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In August 2019, the Consumer Price Index increased by 0,30 units and reached 100,32 units compared to 100,02 units in July 2019. Compared to August 2018, the CPI decreased by 0,7%. (Table 1).

In the twelve-month period from September 2018 to August 2019, in comparison to the period from September 2017 to August 2018, the annual average rate of change of the CPI was 1,3%, while during the corresponding previous twelve-month-period the CPI increased by 0,5%.

Comparing to the index of August 2018 the largest change in economic origin was recorded in Petroleum products (-7,9%), while in comparison to the index of the previous month, the largest change was noted in Electricity with a percentage of -5,9%. (Table 2)

Analysis of changes

Compared to August 2018, the category Food and Non-Alcoholic Beverages recorded the largest change with a percentage of -3,2%. (Table 1)

In comparison to the CPI of the previous month, the largest change was noted in Clothing and Footwear (2,5%). (Table 1)

For the period between January – August 2019, compared to the corresponding period of the previous year, the largest change was recorded in Housing, Water, Electricity, Gas and Other Fuels (5,6%).  (Table 1)

Analysis of effects

Compared to August 2018, the category Housing, Water, Electricity, Gas and other Fuels had the largest positive effect (0,15) on the change of the CPI, while Food and Non-Alcoholic Beverages had the largest negative effect (-0,63). (Table 3)

The category Transport had the largest positive effect (0,25) on the change of the CPI compared to the previous month, while Housing, Water, Electricity, Gas and Other Fuels had the biggest negative effect (-0,23). (Table 3)

Airfares had the most notable positive effect (0,17) on the change of the CPI of August 2019 compared to August 2018 whereas petroleum products had the biggest negative effect (-0,68). (Table 4)

Finally, airfares had the largest positive effect of 0,23 units on the change of the CPI of August 2019 compared to the previous month, while when compared to the previous month electricity had the biggest negative effect of 0,22 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.

Further information visit theStatistical Service (CYSTAT) website, subtheme Consumer Price Index or contact Ms Constandia Papageorgiou: tel: +35722602116, email: cpapageorgiou@cystat.mof.gov.cy or Ms Andri Eftychiou: tel: +35725878595, email: aeftychiou@cystat.mof.gov.cy.

 (EK)