Inflation fell to a four-month low to 1.6% in December 2023, on an annual basis, remaining, as in the previous month (November 2023), within the target set by the European Central Bank for inflation below 2%.

Inflation in December 2023 rose at a rate of 1.6%, the lowest rate since August 2023 and the second lowest in 31 months (since April 2021).

In December 2023, the inflation increased by 1.6%, according to the Statistical Service of Cyprus, which notes that the Consumer Price Index in December 2023 decreased by 1.22 units and reached 115.29 units compared to 116.51 units in November 2023.

For the period January-December 2023, the CPI increased by 3.5% compared to the corresponding period of the previous year.

As regards the economic origin, Petroleum products had the largest change when compared both to the index of December 2022 (-7.2%) and to the index of the previous month (-5.3%).

Compared to December 2022, the largest change was monitored in category Restaurants and Hotels (5.4%). In comparison to the CPI of the previous month, the largest change was noted in Transport (-3%).

For the period January–December 2023, compared to the corresponding period of the previous year, the largest changes were recorded in Food and Non-Alcoholic Beverages (7.7%), Restaurants and Hotels (5.9%) and Housing, Water, Electricity, Gas and Other Fuels (5%).

The Statistical Service says that compared to the Index of December 2022, the categories Food and Non-Alcoholic Beverages (0.73) and Restaurants and Hotels (0.54) had the largest positive effect on the change of the CPI. The largest negative effect was monitored in the category Transport (-0.65).

The largest effect on the change of the CPI compared to the previous month were recorded in categories Transport (-0.53) and Food and Non-Alcoholic Beverages (-0.48), while petroleum products (-1.34) had the most notable effect on the change of the CPI of December 2023 compared to December 2022.

Finally, Petroleum products (-0.55), Electricity (-0.18) and Fresh vegetables (-0.13) had the largest effects on the change of the CPI of December 2023 compared to the previous month.