Press Releases

Inflation -1,9%

In February 2021, the Consumer Price Index increased by 0,11 units and reached 99,32 units compared to 99,21 units in January 2021. Compared to February 2020, the CPI decreased by 1,9%. (Table 1)

For the period January-February 2021, the CPI decreased by 1,7% compared to the corresponding period of the previous year.

As regards the economic origin, the largest changes when compared to the index of February 2020 were recorded in ElectricityandAgricultural goods with percentages of -14,3% and -11,5% respectively. In comparison to the index of the previous month, the largest positive change was monitored in Petroleum products (3,0%) and the largest negative change was observed in Electricity (-2,5%). (Table 2)

Analysis of percentage changes

Compared to February 2020, the largest changes were monitored in the categories Housing, Water, Electricity, Gas and Other Fuels (-4,7%) and Food and non-Alcoholic Beverages (-4,4%). (Table 1)

In comparison to the CPI of the previous month, the largest change was noted in Transport (1,0%). (Table 1)

For the period January-February 2021, compared to the corresponding period of the previous year, the largest changes were recorded in Housing, Water, Electricity, Gas and Other Fuels (-4,6%) and Food and non-Alcoholic Beverages (-4,5%).  (Table 1)

Analysis of effects in units

Compared to the Index of February 2020, the categories Food and non-Alcoholic Beverages (-0,88), Housing, Water, Electricity, Gas and Other Fuels(-0,58) and Transport(-0,40) had the largest negative effect on the change of the CPI. (Table 3)

The category Transport (0,14) had the largest effect on the change of the CPI compared to the previous month. (Table 3)

Fresh vegetables(-0,92), petroleum products (-0,74) andelectricity (-0,54) had the most notable negative effect on the change of the CPI of February 2021 compared to February 2020. (Table 4)

Finally, petroleum products (0,21) had the largest effect on the change of the CPI of February 2021 compared to the previous month. (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 Lefkosia, Larnaka, Lemesos and Pafos. 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: Lefkosia 42%, Lemesos 30%, Larnaka 18% and Pafos 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 January 2015. From January 2016 and onwards, the base year is 2015=100.

Classification                                                                                              

Until January 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 February 2021. 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,

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

(MG/ECHR)