In June 2023, Cyprus experienced its lowest level of inflation in 25 months, with an annual basis rate of 1.9%. This decrease can primarily be attributed to the decline in food prices.

According to the Statistical Service, the Consumer Price Index (CPI) and inflation both decreased in June 2023. The CPI dropped by 0.34 points to 114.38 points, compared to 114.72 points in May 2023. Inflation in June 2023 increased by 1.9% compared to the same period in 2022. This marks the lowest inflation rate since May 2021. It's worth noting that Cyprus experienced its highest inflation rate in July 2022, with an increase of 10.86%.

The June 2023 inflation rate of 1.9% aligns with the target set by the European Central Bank for the Eurozone, which aims for inflation to be close to or below 2%.

From January to June 2023, the CPI increased by 4.6% compared to the same period in the previous year. Analyzing the economic factors, the largest positive change from June 2022 was observed in Agricultural Products, with a rate of 10.9%. Conversely, the largest negative change was recorded in Petroleum Products, with a rate of -22.2%.

When comparing the index to the previous month, the most significant change occurred in Electricity, with a rate of -5.2%. In terms of year-on-year changes, the largest positive change occurred in Food and Non-Alcoholic Beverages (10.1%), while the largest negative change was observed in the Transport sector (-10.3%). Comparing to May 2023, the most significant change was observed in the Housing, Water, Electricity, and Gas category, with a rate of -2.3%.

Between January and June 2023, compared to the same period in the previous year, the largest changes occurred in the Housing, Water, Electricity, and Gas category (9.7%) and the Food and Non-Alcoholic Beverages category (8.8%). Food and Non-Alcoholic Beverages had the most substantial positive impact on the change in the June 2023 CPI relative to June 2022 (2.08), while Transport had the largest negative impact (-1.98). The Housing, Water, Electricity, and Gas category (-0.36) had the most significant negative impact on the month-on-month change in the CPI. Petroleum Products (-2.80) had the most notable effect on the change of the June 2023 CPI compared to June 2022. Lastly, Electricity (-0.29) had the largest negative effect on the change of the June 2023 CPI compared to the previous month.

Moving on to employment in the broad industrial sector, it increased by 4.4% in 2021. The sector's output value, at current prices, rose by 15.1%, reaching €5.43 billion, while value added, at current prices, increased by 7.5% in the total industry.

The Statistical Service published the results of the Survey on Industrial Production 2021, indicating that employment in the broad industrial sector increased by 4.4% to 40.9 thousand people in 2021, compared to 39.1 thousand in 2020.

The manufacturing sector employed 36 thousand people, mining and quarrying employed 0.6 thousand, electricity supply employed 2.2 thousand, and water supply, sewage treatment, and waste management employed 2.1 thousand people. Furthermore, in the overall industrial sector, production value at current prices increased by 15.1% to €5,430.7 million in 2021, compared to €4,719.2 million in 2020.

In manufacturing, production value increased by 11.6% to €4,002.8 million, in electricity supply by 27.6% to €944.9 million, in water supply, sewerage and waste management by 25.0% to €408.5 million, and in mining and quarrying by 13.0% to €74.6 million. Value added at current prices increased by 7.5% in the total industry, reaching €1,882.5 million in 2021, compared to €1,751.1 million in 2020.

In manufacturing, value added increased by 7.7% to €1,419.9 million, in water supply, sewerage, and waste management by 17.9% to €190.2 million, and in mining and quarrying by 19.0% to €31.0 million. Conversely, in electricity supply, value added decreased by 1.4% to €241.5 million.