Cyprus | Price drop due to inflation

The Ministry of Finance is working on a mobile application that will allow consumers to follow the evolution of prices in different supermarkets in real time, in order to choose the most affordable place to shop.

In Cyprus, consumer prices for more than 1,700 products have fallen in the past week. This is due to the government’s decision to abolish VAT on a wide range of basic products, such as bread, milk, eggs and personal hygiene items. The Cypriot Minister of Finance, Makis Keravnos, explained to euronews that the measure, initially scheduled for six months, could be extended if necessary.

The measure could last more than six months

“In an effort to relieve households, especially the most vulnerable, we have decided to zero VAT on a number of goods that consumers use on a daily basis. The measure will last six months. We hope it will reduce inflation and prices. In any case, we will reassess the situation after six months to decide whether it is necessary to extend the measure,” said Makis Keravnos, Cyprus’s finance minister.

Apply zero VAT to a series of basic products

“The target is gradual and we expect a reduction in inflation by the end of the year. In an effort to deal with price pressures and provide relief to households, we have made this decision to apply zero VAT to a number of of everyday basic products. Our decision has a time horizon of 6 months and we expect a reduction in inflation and, therefore, in prices. In any case, if the measure is necessary, we will study it and take the necessary appropriate decisions, concludes Minister Makis Keravnos.

An application to know the prices in real time

Inflation in Cyprus dropped in April to 3.8% annually, but consumer prices for many products, especially food, continue to rise. The Ministry of Finance is working on a mobile application that will allow consumers to follow the evolution of prices in different supermarkets in real time, in order to choose the most affordable place to shop.

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