March Sees Cyprus Inflation Drop To 1.6% Amid Mixed Trends In Consumer Prices

by News Editor

April 16, 2025

In the latest economic update, Cyprus continues to see a decrease in inflation, with March 2025 marking a rate of 1.6%, a decline from February’s 1.9%. This trend has persisted since December 2024, according to recent data released by the government.

Fluctuations In Consumer Goods

The data, compiled by the Consumer Protection Service, offers a detailed view of 250 basic consumer products. These were tracked across 400 retail locations island-wide throughout March. Notably, 23 categories saw price increases, whereas 21 experienced decreases. Milk prices remained steady from February, while significant hikes were seen in Cypriot coffee prices, which soared by 8.7% month-on-month and are up 24.6% compared to last year.

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Rising And Falling Prices

Other increases included frozen hamburgers (6.5%), baby foods (4.1%), and bottled water (4.1%). Meanwhile, various items like vegetables saw a steep price drop of 23%, fresh fish decreased by 11.3%, and vegetable cooking oil by 6.6%. The price reductions extended to legumes, tampons, and fabric softeners.

Underlying Causes And Sector Insights

The decline in the inflation rate is largely due to a drop in clothing and footwear prices, counterbalanced by hikes in restaurant and hotel charges, alongside rising costs for foodstuffs and non-alcoholic beverages. The Consumer Protection Service highlights this data solely as a guideline for consumers, stressing the importance of personal diligence when shopping.

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MSCI To Reclassify Greece As Developed Market In May 2027

by THEFUTURE.TEAM

April 2, 2026

A Pivotal Step In Greece’s Economic Revival

MSCI said Greece will be reclassified from an emerging market to a developed market, with the change effective in May 2027. The move follows years of recovery after the sovereign debt crisis that began in 2009 and led to multiple bailout programmes.

Market Consultation And Broad Support

The decision follows a consultation with market participants, with most supporting the reclassification. Greece had been the only eurozone country classified as an emerging market in MSCI indices. The change will be implemented in a single adjustment across standard, custom, and derived indices during the May 2027 review.

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Implications For Investor Capital Flows

Reclassification is expected to trigger portfolio reallocation between emerging and developed market funds. Emerging market funds may reduce exposure, while developed market funds are expected to increase allocations over time. According to Morgan Stanley, net passive flows are estimated at $300 million, roughly equivalent to one day of trading on the Athens Stock Exchange.

Structural Market Shifts And Future Outlook

Historically, the reclassification of Greece has been associated with significant changes in capital flow dynamics. Emerging market investors are poised to exit Greek positions, while developed market funds will gradually build new exposures. However, market analysts caution that these adjustments could potentially lead to short-term volatility. Notably, Greek equities have already experienced a substantial decline in dollar terms following early investor repositioning amidst geopolitical and sector-specific concerns.

Active Versus Passive Investment Strategies

Active investors may play a role in limiting the impact of passive outflows. Some emerging market funds are expected to retain exposure through off-benchmark allocations. Morgan Stanley cited Greece’s fiscal performance, growth rates, and bank valuations as supporting factors.

Investor Caution And Market Comparisons

JPMorgan raised concerns about the timing of the reclassification. The bank noted that Greece’s weight in European indices will decline, which could reduce investor attention. Comparisons were made to Greece’s previous upgrade in 2001, when market visibility decreased.

Conclusion

The reclassification reflects changes in Greece’s economic position and market structure.Future performance will depend on capital flows, investor allocation decisions, and broader market conditions.

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