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Inflation 1,7%

In December 2018, the Consumer Price Index (CPI) decreased by 1,38 units and reached 100,71 units compared to 102,09 units in November 2018. Compared to December 2017, the CPI increased by 1,7% while for the period January - December 2018, the CPI increased by 1,4% compared to the corresponding period of the previous year. (Table 1)

In the twelve-month period from November 2017 to December 2018, in comparison to the period from November 2016 to December, the annual average rate of change of the CPI was 1,4%. The corresponding rate in the previous twelve month period was 0,5%.

As regards the economic origin, when compared to the index of December 2017 the largest change was recorded in Electricity with an increase of 39,8%, while in comparison to the index of the previous month, the largest change was noted in Petroleum products with a change of -8,8%. (Table 2)

Analysis of changes

Compared to December 2017, the category Housing, Water, Electricity, Gas and Other Fuels recorded the largest positive change with a percentage of 12%. (Table 1)

In comparison to the CPI of November 2018, the largest negative change was noted in Transport        (-4,3%). (Table 1)

For the period January-December 2018, compared to the corresponding period of the previous year, the largest positive changes were noted in Housing, Water, Electricity, Gas and Other Fuels (5,3%) and in Transport (4,4%). (Table 1)

Analysis of effects

The categories with the largest negative effect on the change of the CPI of December 2018 compared to the previous month, was the Transport (-0,67) and the Food and non-alcoholic beverages (-0,63). (Table 3)

The petroleum products (-0,79) and the fresh vegetables (-0,30) had the most notable negative effect on the change of the CPI of December 2018 compared to the previous month while electricity (0,11) had the largest positive effect. (Table 4)

 Note: Totals are calculated on the basis of the effects of the categories with infinite decimal figures and rounded up to two decimals when published. Figures may not add to totals due to rounding error.

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 Lefkosia, Larnaka, Lemesos and Pafos. 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: Lefkosia 42%, Lemesos 30%, Larnaka 18% and Pafos 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:

Statistical Service (CYSTAT) Website, subtheme Consumer Price Index

Contact

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

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

(AH)