The stock held by some merchants is currently saving us from significant price hikes on imported products, even though some of them have already begun to increase due to the attacks by the Houthis on commercial ships in the Red Sea.
If the attacks continue, price increases are expected, especially in electrical appliances and furniture, to be even steeper, as estimated by the General Secretary of the Cyprus Retail Trade Association, Marios Antoniou.
As he stated yesterday to Insider, initial price hikes have already appeared in Cyprus in some products with minor increases for now, but in the immediate future, with deliveries and new pricing being universal, there will be further escalation.
He estimated that the list of products whose prices will increase will grow if there is no de-escalation of the situation and cessation of attacks by the Yemeni rebels on commercial ships.
According to Antoniou, Cypriot suppliers in communication with their suppliers abroad observe widespread concern globally due to the ongoing situation with the Houthi attacks, which tends to persist, resulting in fewer ships using this maritime route for goods transportation, namely the transport of containers via the Red Sea.
The level of concern is increasing among European suppliers as well, Mr. Antoniou notes, stating that a significant portion of the raw materials supplied to European countries come from East Asia.
He further estimated that if this phenomenon continues, our imports from Europe, upon which we are essentially dependent, will be affected overall.
According to his assessment, this scenario will also impact essential goods, as he noted that 98% of imports in Cyprus are made via sea.
Regarding price increases on products affected by the Houthi attacks, he explained that while some have already been revalued, in the coming period, after the depletion of the stock held by some businesses with the old pricing, the phenomenon is expected to be widespread with new deliveries.
The price hikes on products will mainly concern clothing, footwear, cars, furniture, electronics, and electrical appliances, etc. However, the price increase will not be the same for all products.
The highest percentage increase, estimated to range from 15% to 20%, will occur on larger items such as large electrical appliances and furniture. The method of calculating the increase will depend on the value of the shipping container for the items it carries.
