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04-03-2021 13:46

Consumer Price Index (CPI): February 2021

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)

Table 1

Categories of Goods and

Services

CPI (2015=100)

Change (%)

January     2021

February     2021

Feb 21/ Feb 20

Feb 21/ Jan 21

Jan- Feb 21/

Jan- Feb 20

Food and Non-Alcoholic

Beverages

99,33

99,65

-4,42

0,32

-4,51

Alcoholic Beverages and Tobacco

97,58

97,61

-0,69

0,03

-0,53

Clothing and Footwear

90,63

90,14

-0,16

-0,54

2,38

Housing, Water, Electricity, Gas and Other Fuels

106,12

105,75

-4,66

-0,35

-4,64

Furnishings, Household Equipment and Routine Maintenance of the House

94,77

94,86

-0,65

0,09

-0,69

Health

102,25

102,24

0,34

-0,01

0,35

Transport

94,22

95,16

-2,71

1,00

-2,98

Communication

91,50

91,48

-3,99

-0,02

-3,95

Recreation and Culture

101,90

102,09

2,13

0,19

2,11

Education

106,76

106,76

-0,03

0,00

-0,03

Restaurants and Hotels

105,21

105,21

-0,07

0,00

0,07

Miscellaneous Goods and Services

100,60

100,19

0,61

-0,41

0,89

General Consumer Price Index

99,21

99,32

-1,89

0,11

-1,74

 

Table 2

Economic Origin

Weights

Change (%)

Feb 21/ Feb 20

Feb 21/ Jan 21

Agricultural goods

655

-11,50

0,02

Industrial goods (excl.                           petroleum products)

4195

0,21

0,00

Electricity

319

-14,29

-2,49

Petroleum products

550

-8,48

2,95

Water

57

0,00

0,00

Services

4224

0,65

-0,09

General Index

10000

-1,89

0,11

 

Table 3

Categories of Goods and Services

Weights

Effect (units)

Feb 21/ Feb 20

Feb 21/ Jan 21

Food and non-Alcoholic Beverages

1906

-0,88

0,06

Alcoholic Beverages, Tobacco

347

-0,02

0,00

Clothing and Footwear

721

-0,01

-0,04

Housing, Water, Electricity, Gas and Other Fuels

1119

-0,58

-0,04

Furnishings, Household Equipment and Routine Maintenance of the House

644

-0,04

0,01

Health

637

0,02

0,00

Transport

1524

-0,40

0,14

Communication

439

-0,17

0,00

Recreation and Culture

575

0,12

0,01

Education

392

0,00

0,00

Restaurants and Hotels

836

-0,01

0,00

Miscellaneous Goods and Services

860

0,05

-0,04

General Consumer Price Index

10000

-1,91

0,11

Note: Totals are calculated on the basis of the effects of the categories with infinite decimal figures and rounded up to two decimals when published. Figures June not add to totals due to rounding error.

 

Table 4

Goods/Services

Effect (units)

Feb 21/ Feb 20

Positive effect

 

   Fresh fruit

0,18

Other goods and services

0,11

Negative effect

 

Fresh vegetables

-0,92

Petroleum products

-0,74

Electricity

-0,54

TOTAL

-1,91

 

Table 5

Goods/Services

Effect (units)

Feb 21/ Jan 21

Positive effect

 

  Petroleum products

0,21

Negative effect

 

   Electricity

-0,08

Other goods and services

-0,02

TOTAL

0,11

 

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)