In a speech at an event organised by the London Business School Alumni Cyprus Club, Constantinos Herodotou also said energy price inflation remained extremely elevated, and that it was again the dominant component of overall inflation.

“Harmonized inflation rose to a high of 9.1% in August, up from 8.9% in July. For the period January-August as a whole, inflation stood at 7.6%,” he said.

“Compared with the June 2022 Eurosystem staff Broad Macroeconomic Projection Exercise, headline inflation has been substantially revised up in September by 1.3 percentage points to 8.1% for 2022, by 2 percentage points to 5.5% for 2023 and by 0.2 percentage points to 2.3% for 2024,” he added.

Herodotou then pointed out that energy price inflation remained extremely elevated, at 38.3%, and it was again the dominant component of overall inflation.

Market-based indicators suggest that in the near term, oil prices are likely to moderate, while wholesale gas prices will stay extraordinarily high, he added.

Source: In-Cyprus