“We can’t rush and announce increases unless there are tangible events to justify them,” stated Constantinos Karagiorgis, Director of the Consumer Protection Service.
Responding to questions from CNA, Mr. Karagiorgis also noted that there has been a significant downward trend in fuel prices recently, while regarding the sharp increase in olive oil prices in January, he said there was a major shortage in Europe, which affected pricing in Cyprus.
Asked to comment on a statement by the Cyprus Consumers’ Association, which labeled potential increases in electrical appliances resulting from increased freight charges due to changes in shipping routes following the Houthis’ attacks in Yemen as “unjustified,” Mr. Karagiorgis said, “You can’t prepare consumers for increases without knowing how many there will be, what the cost of each increase will be, or whether any increase is justified.”
The Consumers’ Association noted that from January 2021 to January 2023, there was an 11.8% increase in large household electrical appliances, an 8.2% increase in refrigerators and freezers, a 9% increase in washing machines and dryers, and a 14.4% increase in kitchen appliances, citing evidence such as increased freight charges up to €13,000.
Conversely, when freight charges dropped to €2,000, corresponding decreases did not exceed 1%, on average.
Mr. Karagiorgis stated that the routes of many ships have changed, affecting not only electrical goods but also many other products.
“We must be very careful with any announcements because it’s like preparing consumers to pay more without knowing the actual numbers for that period. We will monitor the market, but we cannot predict in advance,” he said.
He noted that due to differences in routes, there may be increases, but “we must be careful not to announce the percentages of increases because many traders may take advantage of the situation and impose increases without justification.”
He also mentioned a significant downward trend in fuel prices recently, which, as he said, is internationally documented.
“It became apparent last month, through the Observatory of the Service, that there is a downward trend, and we also see the decreased inflation,” he said, noting that this decrease had an impact, as a portion related to fuels was passed on to products.
Regarding the price of olive oil, which saw a 30% increase in January compared to December and nearly 50% compared to January 2023, he said there was a shortage of olive oil in Europe as the largest producing countries, Spain and Italy, experienced a significant shortage.
“This had a reflection on the trade and pricing of oil in general,” he said, noting that it certainly also affected pricing in Cyprus.
