Rising food costs shake Cyprus

Within Cyprus, essential food prices are undergoing a distinct escalation, revealing shifts that are being closely monitored by the Prices Observatory. The observed adjustments in staple food prices offer a window into evolving trends.

In the month of July, a thorough investigation of prices led by the Cyprus Consumer Protection Service (CPS) revealed a noticeable uptick in the cost of 32 out of 45 essential food categories.

While there were decreases in prices for 13 essential food categories, the overall trend showed a 1.21% surge in prices compared to the preceding month. This shift was primarily attributed to the escalating costs of both fresh and processed agricultural goods.

The CPS pinpointed the most pronounced price spikes in vegetables, which experienced a staggering 25.3% escalation. Meanwhile, frozen fish witnessed a rise of 2% to 5.5%, sugar surged by 3.7%, coffee experienced a 3.3% hike, and water prices swelled by 3.3% over the course of the month. On the flip side, there was a 5.7% reduction in gas cylinder prices, a notable 15% drop in the cost of fresh fish, a 2.8% dip in condensed milk prices, as well as 1.2% decreases for both pulses and baby food.

This surge in prices mirrors the overall 8.9% inflation rate for food during the initial six months spanning from January to June, as indicated by the CPS. They are actively pursuing investigations into the proper execution of the zero-rate VAT initiative. This involves meticulously tracking the prices of 65 different products across nine distinct supermarkets, with a particular focus on 58 points of sale scattered across the island of Cyprus.