Cypriot society appears divided into three segments regarding the financial condition of households, according to the findings of a nationwide consumer behavior survey. Approximately one in three households report living comfortably, another third say they are just getting by, while the remaining third state they are experiencing mild to severe financial hardship.

The survey, conducted by the Cyprus Consumers and Quality of Life Association in collaboration with CMRC - Cypronetwork Ltd, was presented at a press conference held at the Journalists’ House in Nicosia.

According to the findings, household income remained unchanged for 66% of respondents over the past six months, while 18% reported an increase and 15% a decrease. At the same time, 90% noted that product prices have risen during this period.

The aim of the survey was to analyze consumer behavior and household financial conditions in Cyprus, as well as to evaluate consumer protection measures by both businesses and the state. The results were presented by Loukas Aristodemou, President of the Consumers and Quality of Life Association, and Christos Michaelides, Executive Chairman of Cypronetwork.

The research highlights significant shifts in consumer habits, as rising prices lead households to adjust spending, often opting for more affordable choices. Over half of respondents (52%) stated they have reduced their expenses on everyday goods and services.

The study, conducted in February, included responses from 1,000 individuals aged 18 and over, living in both urban and rural areas. A majority expressed concern about their financial well-being, with many indicating their household’s financial situation had worsened in the last six months.

Specifically, 66% reported stable income, 12% a slight decrease, and 3% a significant drop. Conversely, 16% noted an increase, and 2% a significant one.

In terms of household purchasing habits, six in ten said spending levels remain the same, one in five reported increased spending, and one in four noted a decrease—for the third consecutive year.

Regarding price perception, 90% believe prices have increased, 8% said they have remained stable, and just 2% said they’ve decreased.

The division of society was once again highlighted: 36% of households said they live comfortably, 34% are just managing, and 30% face varying degrees of survival challenges.

Key areas of price increases identified by respondents include food and essential goods (86%), electricity (73%), clothing and footwear (66%), home equipment (55%), and entertainment (53%).

Lower increases were noted in phone and TV bills (31%), education (38%), water (40%), and medication (41%).

Regarding household loans, 4 in 10 respondents said their family has a loan, while 6 in 10 said they do not. Among those with loans, 60% described their debt as a considerable or very heavy burden. Overall, 30% of respondents considered their household over-indebted, while 5% said they will not be able to repay their loans, and 7% believe they likely won’t.

As for financial expectations over the next 12 months, 56% expect no change, 22% anticipate worsening conditions, and 15% expect improvement.

Regarding Cyprus’s economic outlook over the next six months, 43% expect it to remain stable, 35% foresee a downturn, and 16% anticipate improvement. Compared to previous years, households appear slightly more optimistic. In 2023 and 2024, nearly half expected a downturn, while only 10% and 8%, respectively, expected improvement.

When asked about the most pressing issues in Cyprus today, 63% cited price increases, 56% corruption, and 48% poverty and social inequality. These were followed by energy prices (41%), crime and violence (29%), and high taxation (21%).

Only 7% said they are very or extremely aware of their consumer rights, 31% said they are fairly aware, 46% have limited knowledge, and 12% have none.

One in ten respondents reported experiencing violations of consumer rights, including poor product quality, issues with online purchases, price discrepancies between shelf and register, defective goods, misleading advertisements, and refusal to exchange products within a reasonable timeframe.

The survey also evaluated state and business practices in consumer protection. It found persistent lack of awareness about relevant services or bodies. For instance, only 1 in 4 knew about the Rapex system, and only 3 in 10 were aware of alternative dispute resolution bodies for financial or consumer issues.

When evaluating how the state treats citizens, only 1 in 4 gave a positive rating on transparency, 1 in 5 on service responsiveness via phone, and 1 in 3 on equal treatment and legal equity.

Additionally, 57% said it is not easy at all to claim their rights as Cypriot citizens, while 29% said it is somewhat easy.

Participants also rated the importance of various aspects of daily life: 8 in 10 prioritized a better quality of life, 7 in 10 valued personal time, and 6 in 10 highlighted career development and savings. The least important themes were investments and planning for housing or other major expenses.