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Inflation -2,0%

In June 2020, the Consumer Price Index decreased by 0,42 units and reached 99,27 units compared to 99,69 units in May 2020. Compared to June 2019, the CPI decreased by 2%. (Table 1)

For the period January-June 2020, the CPI decreased by 0,3% compared to the corresponding period of the previous year.

As regards the economic origin, the largest change when compared to the index of June 2019 was recorded in Petroleum Products (-17%), while compared to the index of the previous month the largest change was noted in Agricultural goods with a percentage of -7%. (Table 2)

Analysis of percentage changes

Compared to June 2019, the category Transport recorded the largest change with a percentage of -8,3%.(Table 1)

In comparison to the CPI of the previous month, the largest changes were noted in Food and non-Alcoholic Beverages and Transport with percentages of -3,1% and 2,8% respectively. (Table 1)

For the period January–June 2020, compared to the corresponding period of the previous year, the largest changes were recorded in Transport and Clothing and Footwear with percentages of -3,4% and -2,8% respectively.  (Table 1)

Analysis of effects in units

Compared to the Index of June 2019, the categories Transport (-1,26) and Housing, water, electricity, gas and other fuels (-0,59) had the largest effect on the change of the CPI. (Table 3)

The category Food and non-Alcoholic Beverages had the largest negative effect (-0,61) on the change of the CPI compared to the previous month, whereas Transport (0,37) had the largest positive effect. (Table 3)

Petroleum products (-1,44) and Electricity (-0,49) had the most notable effect on the change of the CPI of June 2020 compared to June 2019. (Table 4)

Finally, fresh fruits had the largest negative effect of 0,70 units on the change of the CPI of June 2020 compared to the previous month, whereas petroleum products had the largest positive effect of 0,24 units. (Table 5)

METHODOLOGICAL NOTES

Definitions

The Consumer Price Index (CPI) is compiled to measure the changes of prices over time of consumer goods and services acquired, used or paid by households. Specifically, the national CPI of Cyprus covers the consumption expenses of specific goods and services (shopping basket of goods and services), of the resident households and of the households that intend to live in Cyprus for at least one year. CPI is the official index for the estimation of inflation.

The Inflation shows the change of the CPI when compared with the index of the corresponding month of the previous year.

The Effect represents the amount of the overall change in the General Index which is accounted for by any given category.

Collection

The price collection is carried out only in urban districts of Nicosia, Larnaca, Limassol and Paphos. For each city, the fluctuations in the product prices each month, are weighted according to their population. Specifically, the weights for the four districts are: Nicosia 42%, Limassol 30%, Larnaca 18% and Paphos 10%.

The prices of 805 goods and services are recorded once every month, except for some seasonal products (e.g. vegetables and fruits), meat and fuels, whose prices are collected every week (every Thursday).

Base year

The index reference period was 2005=100 for the period between January 2006 and December 2015. From January 2016 and onwards, the base year is 2015=100.

Classification  

Until December 2015, COICOP 4 classification was used for the calculation and the dissemination of the CPI. From January 2016 and onwards, CYSTAT is adopting the ECOICOP classification satisfying relevant Eurostat’s Regulation. In other words, the lowest level of detail for the classification used in CPI is COICOP 5-digits.

Products/Services and weights

From January 2018 and onwards, the products included in the CPI as well as their corresponding weights have been revised. The revision was based on the results of the Household Budget Survey 2015/2016.

Exceptional Methodological Adjustment

The implementation of precautionary measures and relevant decrees to address the negative consequences of COVID-19 disease had a direct impact on the price collection process of certain goods/services for the month of June 2020. As the problems anticipated were common to all Member States of the European Union, they were tackled by applying the same methodologies under the supervision and guidance of the European Statistical Office (Eurostat).

Missing Prices

In cases where products/goods were not available for consumption, the following practices were followed:

• Missing prices were imputed by the price change of other products or services in the same subcategory,
• In the cases where all the prices were missing for a subcategory, then the previous’ month collected price data were taken as the price of the present month and it included prices that rarely change such as cultural services.

Seasonal Products/Services

The missing airfares along with the missing prices for hotel accommodation were estimated by carrying forward previous’ month prices adjusted with the seasonal factor recorded last year, during the respective month.

Weights

The weights of goods and services in the CPI basket have not been adjusted.

Further information:

Statistical Service (CYSTAT) Website, subtheme Consumer Price Index

Contact

Constandia Papageorgiou: Tel: +35722602116, Email:

cpapageorgiou@cystat.mof.gov.cy

Andri Eftychiou: Τel: +35725878595, Email: aeftychiou@cystat.mof.gov.cy

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