13/07/2004 13:36
According to a survey carried out by the Cyprus Consumer Association in cooperation with RAI Consultants Public, consumer good prices for the first half of 2004 recorded strong fluctuations.
This price swing was mostly attributable to the Cyprus accession in the EU and the adoption of the common tariff, the imposition of additional consumer taxes, the strengthening of competition etc.
The survey focuses on the price fluctuation of 430 pre-selected goods in March – April and May – June compared to the period of January – February, which serves as the base. According to the survey, prices in May – June showed an increase of 1.4% compared to January – February 2004, despite the downward trend in the period March – April, when prices dropped by 0.1%.
Aim
The specific survey aims not only at showing the fluctuation of 430 consumer goods, but also at “launching a new tool” for the information of the average consumer. This tool does not replace the Consumers Price Index of the Cyprus Statistics Service by any means.
What is cheaper/more expensive?
The products with the largest price increases were clothes, which increased by 14.3% and 20.7% in March – April and May- June 2004 respectively, followed by the services in hotels, cafes and restaurants (1.6% and 4.2% respectively) and furniture, household equipment and maintenance (0.8% and 3.8% respectively).
The cost of water supply, electricity and fuel recorded a drop of 5.2% and 14.5% in March – April and May - June respectively, followed by communication prices (0% and 8.9% respectively) and food and non-alcohol drinks (1.9% and 0.65 respectively).
The prices, however, for certain goods had stronger fluctuations for the first half of 2004. Specifically, the price of imported alcoholic drinks dropped by 0.7% and 32.9% in March – April and May - June 2004 due to the abolition of import duties, while vegetable prices declined by 13.2% and 31.9% respectively for “seasonal reasons” and used car prices by 16.7% and 15.3% respectively.
On the other hand, clothing prices showed an increase of 20.2% and 26.6% due to the end of sales and the price of hotel rooms increased by 14.1% and 25.3% due to seasonal reasons. Despite a drop in the domestic alcohol drinks for March – April 2004, prices for May - June 2004 recorded an increase.
Drop in prices
Responding on the question whether the survey includes the impact of the offer and demand in the formation of prices, Chairman of the Cyprus Consumer Association, Petros Marcou said that the cases of violation of dominant position have been brought before the Competition Protection Committee. On the question whether the decline in prices after accession were anticipated to this extent, Mr. Marcou said that the survey did not take into account this factor, but it remains an issue of future examination.
On the question whether the survey includes the advancement of prices in imported and domestic products, Mr. Marcou said that after the abolition of duties on imported fruits and vegetables, the prices of the domestic product have dropped to deal with the harsh competition. The abolition of duties in the imported alcohol drinks restrained the price of domestic alcohol drinks.
This price swing was mostly attributable to the Cyprus accession in the EU and the adoption of the common tariff, the imposition of additional consumer taxes, the strengthening of competition etc.
The survey focuses on the price fluctuation of 430 pre-selected goods in March – April and May – June compared to the period of January – February, which serves as the base. According to the survey, prices in May – June showed an increase of 1.4% compared to January – February 2004, despite the downward trend in the period March – April, when prices dropped by 0.1%.
Aim
The specific survey aims not only at showing the fluctuation of 430 consumer goods, but also at “launching a new tool” for the information of the average consumer. This tool does not replace the Consumers Price Index of the Cyprus Statistics Service by any means.
What is cheaper/more expensive?
The products with the largest price increases were clothes, which increased by 14.3% and 20.7% in March – April and May- June 2004 respectively, followed by the services in hotels, cafes and restaurants (1.6% and 4.2% respectively) and furniture, household equipment and maintenance (0.8% and 3.8% respectively).
The cost of water supply, electricity and fuel recorded a drop of 5.2% and 14.5% in March – April and May - June respectively, followed by communication prices (0% and 8.9% respectively) and food and non-alcohol drinks (1.9% and 0.65 respectively).
The prices, however, for certain goods had stronger fluctuations for the first half of 2004. Specifically, the price of imported alcoholic drinks dropped by 0.7% and 32.9% in March – April and May - June 2004 due to the abolition of import duties, while vegetable prices declined by 13.2% and 31.9% respectively for “seasonal reasons” and used car prices by 16.7% and 15.3% respectively.
On the other hand, clothing prices showed an increase of 20.2% and 26.6% due to the end of sales and the price of hotel rooms increased by 14.1% and 25.3% due to seasonal reasons. Despite a drop in the domestic alcohol drinks for March – April 2004, prices for May - June 2004 recorded an increase.
Drop in prices
Responding on the question whether the survey includes the impact of the offer and demand in the formation of prices, Chairman of the Cyprus Consumer Association, Petros Marcou said that the cases of violation of dominant position have been brought before the Competition Protection Committee. On the question whether the decline in prices after accession were anticipated to this extent, Mr. Marcou said that the survey did not take into account this factor, but it remains an issue of future examination.
On the question whether the survey includes the advancement of prices in imported and domestic products, Mr. Marcou said that after the abolition of duties on imported fruits and vegetables, the prices of the domestic product have dropped to deal with the harsh competition. The abolition of duties in the imported alcohol drinks restrained the price of domestic alcohol drinks.
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