Inflation at 4.1% in September

Inflation in Cyprus remained at high levels in September - although reduced compared to the previous month- amounting to 4.1%.

The increase in energy prices had the biggest impact this on the increase in prices compared to the corresponding month of 2020.

According to the Statistical Service of Cyprus in September 2021, the Consumer Price Index decreased by 0.06 units and reached 104.03 units compared to 104.09 units in August 2021. In September 2021, the inflation increased by 4.1%.

For the period January-September 2021, the CPI increased by 1.8% compared to the corresponding period of the previous year.

As regards the economic origin, the largest changes when compared to the index of September 2020 were recorded in Electricity (39.4%) and Petroleum products (21.1%). In comparison to the index of the previous month, the largest change was monitored in Agricultural goods (-8.7%).

Analysis of percentage changes

Compared to September 2020, the largest changes were monitored in the categories Housing, Water, Electricity, Gas and Other Fuels (14.6%) and Transport (11.6%).

In comparison to the CPI of the previous month, the largest change was noted in Clothing and Footwear (9.7%).

For the period January–September 2021, compared to the corresponding period of the previous year, the largest positive change was recorded in Transport (6.7%), whereas the largest negative change was noted in Communication (-1.8).

Analysis of effects in units

Compared to the Index of September 2020, the categories Transport (1.64) and Housing, Water, Electricity, Gas and Other Fuels (1.63) had the largest effect on the change of the CPI.

The category Food and Non-Alcoholic Beverages (-0.82) had the largest negative effect on the change of the CPI compared to the previous month, whereas the category Clothing and Footwear had the largest positive effect (0.65).

Petroleum products (1.49) and electricity (1.07) had the most notable effect on the change of the CPI of September 2021 compared to September 2020.

Finally, fresh vegetables (-0.49) and fresh fruit (-0.36) had the largest negative effect on the change of the CPI of September 2021 compared to the previous month, whereas clothing (0.48) and footwear (0.17) had the largest positive effect.