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Inflation in Cyprus to rise to 7 per cent in 2022, Commission predicts

The European Commission expects inflation in Cyprus to rise to 7 per cent in 2022, much higher than the Finance Ministry’s forecasted 4.5 per cent.

The Commission’s pessimistic forecast is compatible with that of the Central Bank of Cyprus which also has it at 7 per cent, Philenews reported on Friday.

Nonetheless, the Commission’s technocrats have also predicted that inflation in Cyprus will slow down to 3.3 percent in 2023.

Next year’s prediction takes into account the impact of the partial automatic wage indexation.

Moreover, the economic growth rate for 2022 is expected to slow down to 2.7 per cent, compared to a growth rate of 5.5 per cent in 2021, with the biggest impact being recorded on net exports.

The downward revision by 0.9 percentage points in 2022 compared to the December 2021 forecast is mainly due to the impact of geopolitical developments in the sectors of trade, transport, hotels and restaurants, as well as professional services.

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