NewsLocalCyprus will have difficulty coping with inflation crisis fuelled by Ukraine war-FinMin

Cyprus will have difficulty coping with inflation crisis fuelled by Ukraine war-FinMin

Finance Minister Constantinos Petrides believes the prevailing unprecedented high inflation rates constitute the most dangerous aspect of the energy crisis fuelled by the war in Ukraine.

And that Cyprus will have difficulty coping with this imported crisis which resembles the inflation rates recorded in the 1970s and 1980s.

Petrides was addressing the 12th Nicosia Economic Congress which took place in Nicosia on Tuesday.

Increases in petrol prices, electricity, utility bills, fruit and vegetables drove inflation up in March to a record 7.1%, he added.

Inflation continued its upward trend for the twelfth consecutive month and it is the highest recorded since 1995. The increase comes after price inflation in February reached 6.6%.

He also said: “If the inflation continues rising we will have to adjust the country’s economic policies…more budget funds will have to be targeted towards the vulnerable in order to prevent the possibility of energy poverty and to protect the most vulnerable groups since they are the ones most affected by inflation.”

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