NewsLocalCyprus inflation rises to 11 percent, purchasing power alarmingly reduced

Cyprus inflation rises to 11 percent, purchasing power alarmingly reduced

The annual inflation rate in Cyprus rose to 11 percent in August 2022 from 10.9 percent in July and 9.6 percent in June which had marked the highest inflation rate since August 1981.

This means that for every €1,000 the real purchase value dropped to €891 in July, a loss of €109, while for €2,000 wages the real value is €1,891.

What it also means is that lower and middle income households are struggling to make ends meet day in and day out.

In fact, their purchase power is alarmingly reduced to just the first five days of the month, Philenews reports citing Wednesday’s released figures by the Statistical Service.

The intensity of rising prices is such that has forced the government to put various plans on the table for the absorption of energy costs, based on the endurance of the economy.

Minister of Finance Constantinos Petrides recently announced a new support package for vulnerable members of society and businesses from the increases in electricity prices amounting to €50 million.

This is in addition to the packages that had already been implemented, the cost of which exceeded €300 million.

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