Press Releases

Inflation 2,5%

In August 2018, the Consumer Price Index (CPI) increased by 0,66 units to 100,98 units compared to 100,32 units in July 2018. Compared to August 2017, the CPI is increased by 2,5% while for the period January - August 2018, the CPI is increased by 0,9% compared to the corresponding period of the previous year. (Table 1)

In the twelve-month period from September 2017 to August 2018, in comparison to the period from September 2016 to August 2017, the annual average rate of change of the CPI was 0,5%. The corresponding rate in the previous twelve month period was 0,3%.

As regards the economic origin, the largest changes when compared to the index of August 2017, were recorded in Electricity and Petroleum products with increase of 13,1% and 12,9% respectively. In comparison to the index of the previous month an increase of 6,6% was observed in Agricultural Goods.  (Table 2)

Analysis of changes

Compared to August 2017, the categories Transport and Housing, Water, Electricity, Gas and Other Fuels recorded the largest positive change with a percentage of 6,5%. (Table 1)

In comparison to the CPI of July 2018, the largest positive change was noted in Food and Non-Alcoholic Beverages (2,3%).  (Table 1)

For the period January-August 2018, compared to the corresponding period of the previous year, the largest positive change was noted in Transport (4,4%), while a decrease was recorded in Alcoholic Beverages and Tobacco (-1,7%). (Table 1)

Analysis of effects

The category with the largest effect on the change of the CPI of August 2018 compared to the previous month, was the Food and Non-Alcoholic Beverages (0,45). (Table 3)

The products/services with the most notable effect on the change of the CPI of August 2018 compared to the previous month were the following: vegetables (0,33) and airfares (0,14). (Table 4)

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

(AH/II)