NICOSIA: Inflation in Cyprus for 2024 was reported at 1.8%, marking a year-on-year rise in the Consumer Price Index (CPI), as detailed by the Statistical Service. The CPI for December 2024 saw a slight increase, reaching 118.31 points compared to 118.21 points in November, with a December inflation rate of 2.6%.
According to Cyprus News Agency, the most significant economic category change was observed in Agricultural Goods, which surged by 16.8% compared to December 2023 and 2.6% compared to the previous month. This increase was a major factor in the overall inflation rate for the year.
The analysis of percentage changes highlighted that Food and Non-Alcoholic Beverages and Restaurants and Hotels categories saw notable increases. Compared to December 2023, these categories rose by 7.6% and 4.4%, respectively. In terms of month-to-month comparison, Food and Non-Alcoholic Beverages experienced a 0.7% increase from November 2024.
For the entire year, Restaurants and Hotels recorded the most significant annual increase of 5.4%, reflecting broader trends in the hospitality sector. The impact of these categories on the CPI was substantial, with Food and Non-Alcoholic Beverages contributing 1.69 units and Restaurants and Hotels 0.45 units to the index change from December 2023 to December 2024.
Conversely, the Clothing and Footwear category exhibited a negative impact, decreasing the CPI by 0.21 units in December 2024 compared to the previous year. Within the Food category, Fresh Vegetables had a pronounced positive effect, contributing 0.90 units to the CPI change, while Potatoes represented the most significant negative impact with a decrease of 0.17 units compared to the previous month.
The data underscores the critical role of food prices and agricultural goods in shaping the inflation landscape of Cyprus, with fluctuations in specific food items like fresh vegetables and meat exerting considerable influence on the overall CPI.