Cost-of-living remains high as inflation declines

Public concern over cost-of-living is mounting despite state assurances that the ending of relief measures was warranted and necessary.

Consumers fear that the recent abolition of the energy subsidies for the vast majority of households and the 8.3 cents per liter increase in petrol, will bring a renewed wave of price hikes on items whose production and distribution is tied to electricity and fuel costs.

According to the head of the consumer association, Marios Droushiotis, prices of food and other items have actually slightly dropped.

“However, this does not mean people can afford the current prices which have risen to extremely high levels. A big proportion of the public is struggling,” Droushiotis told Alphanews.

Although the rate of inflation is continuing to decline the cost of food items has remained high, according to the consumer index report.

Figures on annual prices for March announced on Thursday by the state statistical services, confirm the problem, as prices of food and other supermarket items have not fallen, and on the contrary, higher prices seem to have become embedded.

According to the consumer price index the cost of sugar, in particular, has rocketed, with a 61 per cent increase observed in March 2023, compared with March last year.

The average cost increase of dairy products has risen by 12 per cent, compared to the previous annual jump of 3.8 per cent. The cost of yoghurt, specifically, has risen by 15.7 per cent.

Bread and cereals have risen by 10.7 per cent and baked goods by 11.6 per cent (where year’s annual increase was 9.6 per cent).

Despite this, a steady decrease in inflation has been reported, from 10.9 per cent in July 2022 to 5.8 per cent in March 2023.