Food in Cyprus Is Becoming More Expensive Again Faster Than Inflation: An Analysis of the Reasons

Food in Cyprus is becoming significantly more expensive than overall inflation. According to analysts, in April food prices rose by 4.8% year on year, while the overall consumer price index increased by only 2.8%. The trend continued in May: with overall inflation at 2.6%, agricultural products became 4.7% more expensive.

Experts note that this price gap hits low-income families hardest, as they are forced to spend a fixed, and largest, share of their budget on basic groceries. Among the key reasons for the rise in prices are the island’s dependence on imports, higher logistics costs, and the high concentration of the retail market.