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Inflation -0,7%

 In January 2018, the Consumer Price Index (CPI) decreased by 1,21 units to 97,82 units compared to 99,03 units in December 2017. Compared to January 2017, CPI is decreased by 0,7%. (Table 1)

In the twelve-month period from February 2017 to January 2018, in comparison to the period from February 2016 to January 2017, the annual average rate of change of the CPI was 0,4%. The corresponding annual average rate of change of the CPI in the previous twelve month period was -1,3%.

As regards the economic origin, the largest change was recorded in Agricultural goods with a decrease of -13,9% when compared to the index of January 2017. (Table 2)

Analysis of changes

Compared to January 2017, the largest change was noted in Food and Non-Alcoholic Beverages (-5,8%). (Table 1)

In comparison to the CPI of December 2017, decrease was recorded in Clothing and Footwear (-18%). (Table 1)

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. More information is available on the file Consumer Price Index, which is posted on the website of the Statistical Service under the statistical theme "Economy / Consumer Price Index," of the Methodology part.

Further information

Constandia Papageorgiou: Tel: +35722602116, Email: cpapageorgiou@cystat.mof.gov.cy

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

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AH