June inflation marks 40-year high 9.6%

Cyprus is enduring its highest inflation rate in four decades, as the cost of living increased by 9.6% in June, breaking the previous 40-year record of 9.1% registered in February 1982.

The highest inflation rate Cyprus witnessed was 10.8% in December 1981.

In June, the Consumer Price Index increased by 0.87 units and reached 112.24 from 111.37 in May.

The statistical services released June’s inflation figures on Thursday, confirming that consumer purchasing power continues to diminish as the war in Ukraine rumbles on.

Based on the data, for every €1,000 of income, consumers have suffered a loss of €96 compared to the same month last year.

Compared to June 2021, the largest increases were observed in Transport (24.7%), Housing, Water, Electricity and LPG (23.5%), Restaurants and Hotels (8.2%), and Food and Non-Alcoholic Beverages (7.9%).

From the CPI last month, the largest positive change was noted in Transport (4.9%), while the largest negative change was recorded in the category Food and Non-Alcoholic Beverages (-2,5%).

For January – June, compared to the corresponding period of the previous year, the largest changes were recorded in Housing, Water, Electricity, Gas and Other Fuels (18,6%), Transport (17,6%) and Food and non-Alcoholic Beverages (8,1%).

For the first six months to June, price inflation stood at 7.8% compared to the same period last year.

Last year, inflation stood at 2.5%, but the Ukraine war, sanctions on Russia, and supply chain bottlenecks post-pandemic have crippled the global economy.

Source: Financial Mirror