It is still uncertain how much the Cyprus economy will be affected by the consequences from the war in Ukraine but a rising inflation is unavoidable, according to Finance Minister Constantinos Petrides.
In addition, the blow from the flow of Ukrainian tourism and unavoidable increase in fuel prices will affect each and every household’s income and business operating costs.
Nonetheless, Talking on state television on Sunday evening Petrides tried to assure that the already imposed sanctions against Russia do not directly affect Cyprus.
But he did express concern that at a time of an already high inflation shocks can lead to additional inflationary pressure.
And that price increases are a certainty when it comes to fuel and oil where the Cyprus market is highly dependent.
At the same time, the increase in the price of cereals will affect the cost of bread, pasta, flour and all of its derivatives.
Regarding visa restrictions and the possibility of tourism from Russia getting highly affected, the Minister said the measure does not actually reach the general population.
And he referred to the example of Crimea saying that at the time of that crisis there was a reduction in the flow of Russia tourists by only about 10%-15%.