Press Releases

Inflation 2,3%

In July 2018, the Consumer Price Index decreased by 1,17 units to 100,32 units compared to 101,49 units in June 2018. Compared to July 2017, the CPI is increased by 2,3% while for the period January - July 2018, the CPI is increased by 0,6% compared to the corresponding period of the previous year. (Table 1)

In the twelve-month period from August 2017 to July 2018, in comparison to the period from August 2016 to July 2017, the annual average rate of change of the CPI was 0,3%, same as in the previous twelve month period.

As regards the economic origin, the largest change when compared to the index of July 2017, was recorded in Petroleum products with an increase of 13,8%, while in comparison to the index of the previous month a decrease of 3,4% was observed in Industrial goods (excl. petroleum products).  (Table 2

Analysis of changes

Compared to July 2017, the largest positive change was noted in Transport (6,7%). (Table 1)

In comparison to the CPI of June 2018, the largest negative change was noted in Clothing and Footwear (-15,6%).  (Table 1)

For the period January-July 2018, compared to the corresponding period of the previous year, the largest positive change was noted inTransport(4,1%), while a decrease was recorded in Alcoholic Beverages and Tobacco (-1,8%). (Table 1)

Analysis of effects

The category with the largest effect on the change of the CPI of July 2018 compared to the previous month, was the Clothing and Footwear (-1,20). (Table 3)

The products/services with the most notable effect on the change of the CPI of July 2018 compared to the previous month were the following: Clothing (-0,87) and Footwear(-0,33). (Table 4)

METHODOLOGICAL NOTES 

Definitions

The Consumer Price Index (CPI) is compiled to measure the changes of prices over time of consumer goods and services acquired, used or paid by households. Specifically, the national CPI of Cyprus covers the consumption expenses of specific goods and services (shopping basket of goods and services), of the resident households and of the households that intend to live in Cyprus for at least one year. CPI is the official index for the estimation of inflation.

The Inflation shows the change of the CPI when compared with the index of the corresponding month of the previous year.

The Effect represents the amount of the overall change in the General Index which is accounted for by any given category.

Collection

The price collection is carried out only in urban districts of Nicosia, Larnaca, Limassol and Paphos. For each city, the fluctuations in the product prices each month, are weighted according to their population. Specifically, the weights for the four districts are: Nicosia 42%, Limassol 30%, Larnaca 18% and Paphos 10%.

The prices of 805 goods and services are recorded once every month, except for some seasonal products (e.g vegetables and fruits), meat and fuels, whose prices are collected every week (every Thursday).

Base year

The index reference period was 2005=100 for the period between January 2006 and December 2015. From January 2016 and onwards, the base year is 2015=100.

Classification                                                                                                                 

Until December 2015, COICOP 4 classification was used for the calculation and the dissemination of the CPI. From January 2016 and onwards, CYSTAT is adopting the ECOICOP classification satisfying relevant Eurostat’s Regulation. In other words, the lowest level of detail for the classification used in CPI is COICOP 5-digits.

Products/Services and weights

From January 2018 and onwards, the products included in the CPI as well as their corresponding weights have been revised. The revision was based on the results of the Household Budget Survey 2015/2016.

Further information:

Constandia Papageorgiou: Tel: +35722602116, Email: cpapageorgiou@cystat.mof.gov.cy

Andri Eftychiou: Τel: +35725878595, Email: aeftychiou@cystat.mof.gov.cy

(MG/SCH)