Inflation this February increased slightly, by 1.8%, mainly due to increases recorded in the services sector, compared to February 2023, following the significant deceleration of inflation in November and December 2023 and January 2024. Despite the increase, inflation remains below the European Central Bank's target of 2% inflation in the euro area.

According to data published on Thursday by the Cyprus Statistical Service, the Consumer Price Index increased by 1.03 units and reached 114.93 units compared to 113.90 units in January 2024.

For the period January-February 2024, the CPI increased by 1.8% compared to the corresponding period of the previous year.

As regards the economic origin, the largest change when compared to the index of February 2023 was recorded in Services (3.7%). In comparison to the index of the previous month, the largest change was monitored in Agricultural goods (5.6%).

Analysis of Percentage Changes

Compared to February 2023, the largest change was observed in the category Restaurants and Hotels (6.2%). In comparison to the CPI of the previous month, the largest changes were noted in Clothing and Footwear (3.1%) and in Food and Non-Alcoholic Beverages (2.7%).

For the period January–February 2024, compared to the corresponding period of the previous year, the largest changes were recorded in Restaurants and Hotels (5.9%) and Miscellaneous Goods and Services (3.7%).

Analysis of Effects in Unit

Compared to the Index of February 2023 the categories Restaurants and Hotels (0.62) and Food and Non-Alcoholic Beverages (0.43) had the largest positive effect on the change of the CPI.

The largest effect on the change of the CPI compared to the previous month was recorded in categories Food and Non-Alcoholic Beverages (0.60) and Clothing and Footwear (0.22).

Catering services (0.60) had the most notable effect on the change of the CPI of February 2024 compared to February 2023.

Finally, Fresh Vegetables (0.38) had the largest effect on the change of the CPI of February 2024 compared to the previous month.