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Cyprus Sees Annual Harmonised Inflation Rise To 3%

by THEFUTURE.TEAM

June 19, 2024

Cyprus has experienced a notable increase in its harmonised inflation rate, which rose by 3.0% on an annual basis from May 2023 to May 2024. The data, released by the Statistical Service of the Republic of Cyprus, also indicated a month-to-month rise of 1.2% between April and May 2024. Furthermore, for the first five months of 2024, the Harmonised Index of Consumer Prices (HICP) increased by 2.2% compared to the same period in the previous year.

Analysing the Implications of Rising Inflation

This inflationary trend highlights several key economic dynamics. Firstly, the consistent rise in prices across a broad spectrum of goods and services reflects underlying pressures within the Cypriot economy. The increase in the HICP is significant as it measures price stability and inflationary trends in a manner that is harmonised across EU member states, allowing for a more accurate comparison of economic conditions.

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Economic Drivers and Sectoral Impacts

The inflation rate is influenced by multiple factors including global energy prices, domestic demand, and supply chain constraints. In Cyprus, energy prices have been a substantial driver, compounded by global uncertainties and regional market dynamics. Additionally, the rebound in consumer demand post-pandemic has exerted upward pressure on prices, affecting sectors such as housing, utilities, and transportation.

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Electric Vehicle Subsidies in Cyprus: Urgent Calls for Government Action

by News Editor

May 9, 2025

The Motor Vehicle Importers and Electric Vehicle Association (Semio) has urgently called upon the Transport Ministry for immediate action concerning the ongoing hurdles with electric vehicle (EV) subsidies in Cyprus.

Semio expresses its concern, warning that any further delays could exacerbate financial strain on its members and heighten consumer dissatisfaction. A formal meeting with the Transport Minister is on the agenda to clarify the government’s position on the subsidy program.

Uncertainties and Impacts

The sudden stop of the EV grant scheme has stirred worry among car importers and potential buyers, leaving stockpiles of electric vehicles in limbo. This unexpected pause in government-backed support has echoed across the industry, with numerous consumer complaints surfacing.

Amid these events, there’s also the broader backdrop of the Cyprus government’s decision to reallocate funds within the national Recovery and Resilience Plan (RRP), aiming to stay aligned with EU financing requirements.

A Call for Dialogue

Despite the ministry’s assurances of pursuing additional funding and maintaining alignment with national energy objectives, Semio criticizes the lack of communication and urges consultation before implementing changes.

On a related note, Cyprus faces challenges in achieving its ambitious EU-mandated goal of registering 80,000 electric vehicles by 2030. The road ahead appears daunting unless a cohesive strategy is adopted.