The Ministry of Finance has revised an initial 2022 inflation estimate of 1.5% to 4% due to the rise in petrol prices in the midst of the crisis in Ukraine.
The new projection was announced during a parliamentary committee on trade which discussed the matter of the continuous rise in prices and inflation, on Tuesday.
Addressing MPs, Economic Director at the Ministry of Finance Lucy Herodotou Mouskou said that this increase will cost public coffers €25 million because of the cost of living adjustment (COLA) and added that the rise in prices is creating problems with the implementation of the government`s development programme.
She noted that revised projections about 2022 inflation are now 4% rather than 1.5% and said that any additional burden will cause further difficulty in the implementation of the government`s development programme.
Source: Cyprus News Agency