By George Vichas
Accuracy and increases, the two words that monopolize interest in households in Cyprus and the world.
Conditions as they have developed both within and outside the borders are constantly pushing up prices on key consumer products causing chain increases across all sectors.
As research conducted for the Cyprus Times by Analytica Market Research, inevitably the capital increases-precision has moved to the forefront of interest with consumers expecting the much-needed stabilisation in the indices after a significant period of increases.
We are reaching the peak
Speaking to Cyprus Times, DISY MP, Economist Marios Mavridis assessed that we are reaching the peak of the hike rally.
As he noted, there will be reductions in the medium term, but in the short term there will be a period of stabilization at the high end. "The world is adjusting, production is adjusting and demand is adjusting," he explained.
Mavridis said there will be a period when prices will remain high, noting at the same time that there is an unpredictable factor called international developments.
The unstable factor
Should there be new negative data regarding the implications of the war front in Ukraine, for example a freeze in the export and transport of grain, then the market will again see increases. "Prices are shaped around what the market expects to happen," he noted.
The market has already started to adjust
Regarding fuel, Mavridis noted that the market has already started to adjust. "Global demand has decreased" he stressed.
The DISY MP explained that the higher the price of energy rises, the more the global economy slows down and therefore the demand and therefore the price decreases, but on the other hand the supply has started to increase in some parts of the world. "There may be the loss from Russia, but there is more production from other countries."
The point is that the production plants of these countries are at their limits in that they have had to shut down facilities due to reduced demand during the pandemic, which they are now slowly trying to bring back online to be able to respond. The refineries also faced a problem, Mavridis noted.
"Production is gradually increasing, they have allowed Venezuela to export, there are developments, renewables are progressing and the world will start to adapt in the medium term," he concluded.
"Many people on low incomes are now facing the issue of survival"
"The world is in despair and especially the lower strata", says the President of the Cyprus Consumer Association.
Speaking to the Cyprus Times, Marios Droussiotis stressed that "there are enough low-income people who now face the issue of survival and not shrinking desires."
As Mr Droussiotis noted, he is constantly receiving phone calls from consumers for complaints and allegations of obscenity. "People are now suspicious," he noted.
As for the broader picture, Drusiotis estimated that June-July will see a peak in increases followed by a long period of stabilization at the high end.
Fuel prices and changes from pre-pandemic to date
Indicative fuel prices as recorded by the Cyprus Consumers Association with the difference in price over a period of months and pre-pandemic prices.
From 1 January to date the price of 95 octane petrol has risen by 71 cents a litre, diesel by 76 cents a litre, and heating oil by 72 cents.
Detailed data from the Cyprus Consumers Association on fuel prices up to June 16.
Contents of this article including associated images are belongs Cyprus Times
Views & opinions expressed are those of the author and/or Cyprus Times
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