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Inflation In Cyprus Stalls At 3% Despite VAT Relief Measures

Inflation in Cyprus has remained stubbornly at 3% for the second month in a row, showing little sign of easing—even as government policies, including a zero VAT rate on select goods until the end of 2025, aim to curb rising costs.

The latest data from Eurostat, released on Monday, caught many by surprise. The harmonized inflation rate for January stood at 3% year-on-year, a notable jump from 2.1% in January 2024 but still a far cry from the staggering 6.8% recorded in January 2023.

Across the Eurozone, inflation edged up slightly, reaching 2.5% in January from 2.4% in December. Cyprus is among eight countries where inflation remains between 3% and 5%, alongside Croatia (5%), Belgium (4.4%), Slovakia (4.1%), Austria (3.5%), Lithuania (3.4%), Greece (3.1%), and Latvia (3%).

Several other European nations also reported inflation above the 2% mark, including Slovenia (2.3%), Luxembourg (2.4%), Portugal (2.7%), Germany and Estonia (2.8%), and Spain and the Netherlands (2.9%). Meanwhile, the lowest inflation rates were observed in Ireland (1.5%), Finland (1.6%), Italy and Malta (1.7%), and France (1.8%).

Breaking down the inflationary pressures, energy prices in the Eurozone climbed 1.8% compared to a modest 0.1% rise in December. Food inflation, however, showed a slight cooldown, with the food, alcohol, and tobacco index rising 2.3%, down from 2.6% previously. Meanwhile, service sector inflation eased marginally to 3.9% from 4%.

Despite government intervention, inflation in Cyprus appears to be holding firm, raising concerns over the effectiveness of current measures in bringing prices under control.

TikTok Returns To US App Stores 

TikTok is once again available for download in the Apple and Google app stores in the US, following a delay in the enforcement of its ban by former President Donald Trump. The ban’s postponement until April 5 gives the administration additional time to evaluate the situation.

Key Developments

The decision to restore TikTok access came after Google and Apple received reassurances from the Trump administration that they would not face legal consequences for reinstating the Chinese-owned app. According to Bloomberg, US Attorney General Pam Bondi sent a letter outlining these guarantees.

In an executive order signed on January 20, Trump instructed the attorney general not to take enforcement action for 75 days, providing time for his administration to determine how to proceed.

Uncertain Future For TikTok In The US

While TikTok is back on the US app stores, its long-term survival remains uncertain. If no deal is reached by early April to address national security concerns, the app may face another shutdown. ByteDance, the parent company, has insisted that TikTok is not for sale.

Legislation And Pressure On ByteDance

The Protecting Americans from Foreign Enemy-Controlled Apps Act, which passed with bipartisan support in Congress, mandates a nationwide ban on TikTok unless ByteDance sells its US operations. This law was signed by President Joe Biden in April of last year.

In late January, the app was briefly removed from US stores following the ban’s activation, impacting over 170 million American users. However, TikTok was restored soon after, following Trump’s intervention in his first hours as president. During that time, he signed an executive order allowing 75 days for a deal that would safeguard national security. Trump also suggested that the US could take a 50% stake in TikTok, a move he believed would keep the app “in good hands.”

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