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Cyprus Inflation: Key Shifts In 2024 Consumer Prices

by THEFUTURE.TEAM

January 3, 2025

Inflation in Cyprus stood at 1.8% for 2024, according to the latest figures from the Statistical Service. The Consumer Price Index (CPI) for the year saw a modest increase compared to 2023, reflecting subtle but notable shifts in specific economic categories.

In December 2024, the CPI edged up by 0.10 points, reaching 118.31 points from 118.21 points in November. On an annual basis, inflation for December accelerated to 2.6%.

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Noteworthy Category Changes

Among the most significant annual shifts, Agricultural Goods recorded a dramatic increase of 16.8% compared to December 2023. Month-on-month, the same category also saw a 2.6% rise, highlighting its continued volatility.

Other prominent contributors included Food and Non-Alcoholic Beverages, which rose by 7.6% year-on-year, and Restaurants and Hotels, up by 4.4% over the same period. On a monthly basis, Food and Non-Alcoholic Beverages also led the way with a 0.7% increase in December 2024.

For the full year, the Restaurants and Hotels category exhibited the most substantial change, growing by 5.4% compared to 2023.

Driving Forces Behind the CPI

The categories that contributed the most to the annual CPI increase were Food and Non-Alcoholic Beverages (1.69 units) and Restaurants and Hotels (0.45 units). Conversely, Clothing and Footwear exerted the most significant downward pressure, subtracting 0.21 units from the index.

On a month-to-month basis, the Food and Non-Alcoholic Beverages category had the greatest influence, contributing 0.16 units to the CPI increase.

Drilling down further, Fresh Vegetables emerged as the leading driver of the December 2024 CPI, with a positive impact of 0.90 units compared to December 2023. Catering Services (0.45 units) and Meat (0.23 units) also played significant roles. However, Potatoes acted as a drag on the index, contributing -0.17 units to the monthly change.

A Closer Look at Inflation’s Roots

Cyprus’s relatively low inflation rate in 2024 masks nuanced economic pressures. Rising food and hospitality costs are shaping consumer experiences, while agricultural price fluctuations add complexity to the inflation narrative. These trends underscore the evolving landscape for both consumers and businesses as the nation heads into 2025.

The Decline Of Smartwatches: A Turning Point In The Wearable Tech Industry

by THEFUTURE.TEAM

March 13, 2025

For the first time in history, the smartwatch market is facing a significant downturn. Shipments are expected to drop by 7% in 2024, marking a major shift in a segment that has been growing steadily for over a decade. A report by Counterpoint reveals that while Apple still holds the top spot, its dominance is being challenged by a surge from Chinese brands like Huawei, Xiaomi, and BBK. Even as the overall market struggles, some companies are thriving.

The Big Picture: Why Smartwatches Are Slowing Down

Apple’s flagship products have long been the driving force in the smartwatch market, but even the tech giant is feeling the pressure. The company’s shipments are projected to fall by 19% this year, though it will remain the market leader. Meanwhile, brands from China are capitalizing on the shift, with Huawei showing an impressive 35% growth in sales, driven by the booming domestic market and a broad range of offerings, including smartwatches for kids.

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Xiaomi, too, is experiencing remarkable success, with a staggering 135% increase in sales. In contrast, Samsung is seeing more modest growth, up 3%, thanks to its latest Galaxy Watch 7 and Galaxy Watch Ultra series.

While some companies are succeeding, the broader market is facing headwinds. The biggest factor behind the overall decline is the slowdown in India, where consumer demand for smartwatches has stagnated. The segment is suffering from a lack of innovation and fresh updates, leaving many consumers with little incentive to upgrade their devices. Add to that market saturation, and it’s clear why many users are content with their current models. The Chinese market, however, is bucking the trend, showing 6% growth in 2024.

A Glimpse Into The Future

Looking ahead, the smartwatch market may begin to recover in 2025, driven by the increasing integration of AI and advanced health monitoring tools. As these technologies evolve, the industry could see a resurgence in demand.

Huawei’s Remarkable Comeback

Huawei’s impressive performance in the smartwatch space signals a broader recovery for the company, which has been hit hard by US sanctions. Once the world’s largest smartphone maker, Huawei’s business was decimated when it lost access to advanced chips and Google’s Android operating system in 2019. But in China, Huawei has maintained its dominance, with its market share growing to 17% in 2024.

This resurgence was partly driven by the launch of the Mate 60 Pro, a smartphone featuring a 7-nanometer chip developed in China. Despite US sanctions, the device surprised many with its capabilities, a testament to China’s rising investment in domestic semiconductor production.

In February, Huawei also unveiled its Mate XT foldable smartphone, the world’s first device to fold in three directions. Running on HarmonyOS 4.2, Huawei’s proprietary operating system, the phone further demonstrates the company’s resilience and ability to innovate despite international challenges.

Huawei’s smartwatch offerings are also catching attention, particularly the Huawei Watch GT 5 Pro, which launched in September of last year. With a premium titanium alloy design, a high-resolution AMOLED display, and impressive health tracking features, the GT 5 Pro has become a standout in the market, available to both Android and iOS users.

A Brief History Of The Smartwatch Revolution

The smartwatch market has had its fair share of milestones, but the real breakthrough came in 2012 with the Pebble, a Kickstarter-funded project that raised over $10 million. Pebble introduced the world to smartphone integration, app downloads, and long battery life, becoming the first truly mass-market smartwatch.

In 2013, Samsung entered the game with the Galaxy Gear, marking its first attempt at wearable tech. But it was Apple’s entry in 2014 that truly set the industry on fire. The Apple Watch’s sleek design, integration with iOS, and emphasis on health and fitness catapulted it to the top of the market, establishing a standard that many other brands would try to follow.

By 2021, the smartwatch industry had grown to over $30 billion in revenue, with annual growth reaching 20%. Yet now, it finds itself at a crossroads, with innovation stagnating and market saturation taking a toll.