Harmonised inflation seen at 0.5% as hotels, resturants hike prices

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By Stelios Orphanides

The harmonised consumer price index rose last month an annual 0.5 per cent mainly as the island’s hospitality industry passes energy price increases to consumers as it operates on full capacity, the statistical service said.

From January to August, the harmonised annual inflation rate was 1 per cent, Cystat said in a statement on its website on Tuesday. Compared with the month before, consumer prices rose 1 per cent in August.

Energy prices rose last month 6 per cent compared with August 2016 and services rose 2.1 per cent, Cystat said. This was offset by a 2.9 per cent drop in food, alcoholic beverages and tobacco prices and a 1.1 per cent reduction of industrial product prices excluding fuel.

In August, hotels and restaurants increased their prices on average 3.1 per cent compared with the respective month of 2016, even as prices in the sub-categories of food and non-alcoholic beverages, alcoholic beverages and tobacco and equipment and cleaning and furnishings, household equipment and routine fell 2.8 per cent, 3.3 per cent and 2.4 per cent respectively. Prices in the subcategories of transport and housing, water, electricity, gas and other fuels rose 4.5 per cent and 4.7 per cent.

 

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • almostbroke

    Of course they did ‘ the mantra prevails ‘ maximum profit for minimum input’

    • Terryw45

      From the horses’ mouth, to the next generation,
      ‘This is why I say, do not stop, claim what belongs to you. Do not hesitate to demand’
      As the saying goes ‘Abandon all hope ye who enter here,

  • Mist

    The CTO ie. the government, has to approve the prices in restaurants, so it was approved by Nic? The cost of wholesale decreases so we will increase the price retail.

  • Bernard Smart

    Lots of tourists so we can afford to pi$$ a few off with higher prices.
    will they be back? who cares plenty more schmucks where they came from.
    The locals can either pay up or go elsewhere we dont need their money until the chill wind of winter arrive and we cant repay our bank lone. oh i forgot never pay those anyway so no worries m8!