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05-08-2021 12:50

Consumer Price Index (CPI): July 2021

In July 2021, the Consumer Price Index increased by 0,11 units and reached 102,50 units compared to 102,39 units in June 2021. In July 2021, the inflation increased by 4,0%. (Table 1)

For the period January-July 2021, the CPI increased by 1,0% compared to the corresponding period of the previous year.

As regards the economic origin, the largest changes when compared to the index of July 2020 were recorded in Electricity (33,9%) and Petroleum products (19,9%). In comparison to the index of the previous month, the largest change was monitored in Agricultural goods (4,9%).  (Table 2)

Analysis of percentage changes

Compared to July 2020, the largest changes were monitored in the categories Housing, Water, Electricity, Gas and Other Fuels (12,7%) and Transport (10,1%). (Table 1)

In comparison to the CPI of the previous month, the largest change was noted in Clothing and Footwear (-12,4%). (Table 1)

For the period January–July 2021, compared to the corresponding period of the previous year, the largest positive change was recorded in Transport (5,4%), whereas the largest negative change was noted in Communication (-2,3%).  (Table 1)

Analysis of effects in units

Compared to the Index of July 2020, the categories Transport (1,45) and Housing, Water, Electricity, Gas and Other Fuels (1,44) had the largest effect on the change of the CPI. (Table 3)

The category Clothing and Footwear (-0,93) had the largest effect on the change of the CPI compared to the previous month. (Table 3)

Petroleum products (1,45) and electricity (0,98) had the most notable effect on the change of the CPI of July 2021 compared to July 2020. (Table 4)

Finally, fresh fruits (0,32) and petroleum products (0,32) had the largest positive effect on the change of the CPI of July 2021 compared to the previous month, whereas clothing (-0,62) and footwear (-0,31)  had the largest negative effect. (Table 5)

Table 1

Categories of Goods and

Services

CPI (2015=100)

Change (%)

June

2021

July    2021

Jul 21/ Jul 20

Jul 21/

Jun 21

Jan- Jul 21/

Jan- Jul 20

Food and Non-Alcoholic

Beverages

99,86

101,67

4,02

1,81

-1,52

Alcoholic Beverages and Tobacco

97,81

97,49

-0,29

-0,33

-0,46

Clothing and Footwear

104,59

91,66

-1,63

-12,36

2,12

Housing, Water, Electricity, Gas and Other Fuels

111,70

113,94

12,72

2,01

1,64

Furnishings, Household Equipment and Routine Maintenance of the House

96,13

96,49

1,49

0,37

-0,09

Health

102,78

102,81

0,67

0,03

0,61

Transport

101,08

103,61

10,12

2,50

5,36

Communication

91,60

94,03

1,65

2,65

-2,25

Recreation and Culture

102,55

102,74

1,02

0,19

2,06

Education

106,76

106,76

0,24

0,00

0,08

Restaurants and Hotels

107,13

107,14

1,50

0,01

0,38

Miscellaneous Goods and Services

101,36

100,59

0,70

-0,76

0,95

General Consumer Price Index

102,39

102,50

4,04

0,11

0,98

 

Table 2

Economic Origin

Weights

Change (%)

Jul 21/

Jul 20

Jul 21/

Jun 21

Agricultural goods

655

11,87

4,85

Industrial goods (excl.                           petroleum products)

4195

0,11

-2,39

Electricity

319

33,89

1,31

Petroleum products

550

19,90

3,94

Water

57

0,00

0,00

Services

4224

1,44

0,72

General Index

10000

4,04

0,11

 

Table 3

Categories of Goods and Services

Weights

Effect (units)

Jul 21/

Jul 20

Jul 21/

Jun 21

Food and non-Alcoholic Beverages

1906

0,75

0,34

Alcoholic Beverages, Tobacco

347

-0,01

-0,01

Clothing and Footwear

721

-0,11

-0,93

Housing, Water, Electricity, Gas and Other Fuels

1119

1,44

0,25

Furnishings, Household Equipment and Routine Maintenance of the House

644

0,09

0,02

Health

637

0,04

0,00

Transport

1524

1,45

0,39

Communication

439

0,07

0,11

Recreation and Culture

575

0,06

0,01

Education

392

0,01

0,00

Restaurants and Hotels

836

0,13

0,00

Miscellaneous Goods and Services

860

0,06

-0,07

General Consumer Price Index

10000

3,98

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)

Jul 21/ Jul 20

Positive effect

 

Petroleum products

1,45

Electricity

0,98

Fresh vegetables

0,44

Fresh fruits

0,38

Other goods and services

0,73

TOTAL

3,98

 

Table 5

Goods/Services

Effect (units)

Jul 21/ Jun 21

Positive effect

 

Fresh fruits

0,32

Petroleum products

0,32

Other goods and services

0,40

Negative effect

 

Clothing

-0,62

Footwear

-0,31

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 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 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 July 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

(NG/SCH)