Data released by the Cyprus Statistical Service today indicates a deceleration in Cyprus's inflation rate for October 2023. This follows two consecutive months of rising prices. The Consumer Price Index (CPI) for October increased marginally by 0.30 units to 117.97, compared to 117.67 in September 2023. Notably, the annual inflation rate decreased to 3.5%, a decline from 4.02% in the preceding month.

From January to October 2023, the CPI saw a rise of 3.9% compared to the same period in the previous year. Agricultural goods experienced the most substantial positive change year-over-year with a 6.9% increase in October, though this rate significantly fell from the 15.2% observed in the prior month. Electricity and fuel prices accelerated at rates of 5.35% and 3.08%, respectively.

In terms of individual category impacts on the CPI, food and non-alcoholic beverages witnessed the most significant rise, contributing an increase of 1.20 units. Conversely, the only category to negatively impact the CPI was communication, decreasing by 0.02 units.

The Central Bank of Cyprus's latest data, released today, revealed fluctuations in September 2023’s deposit and lending rates. Interest rates on deposits from households for up to one year rose sharply to 1.59%, a notable increase from the 0.88% rate in the previous month. However, the rate for deposits from non-financial corporations saw a decrease to 1.67%, down from 1.78%.

Lending rates for consumer credit and house purchases varied. Consumer credit rates remained stable with a slight decrease to 6.05% from 6.06%. The rate for house purchase loans increased to 4.42%, up from 4.29%. Interest rates for loans to non-financial corporations for amounts up to €1 million moderately increased to 5.72%, from 5.56%. Meanwhile, rates for loans over €1 million to the same corporations dropped to 5.59% from 6.10%.

Lastly, in September 2023, new loans in Cyprus totaled €578.0 million, a €52.3 million increase from the previous month's €525.7 million. Notably, new housing loans recorded a significant rise of €17.7 million.

Interest rates also experienced remarkable shifts. According to the Central Bank of Cyprus, household deposit rates for up to one year surged to 1.59%, compared to 0.88% in the previous month. Rates for non-financial corporation deposits decreased slightly to 1.67% from 1.78%.

Loan interest rates also showed variations. The rate for consumer loans marginally decreased to 6.05% from 6.06%. However, housing loan rates climbed to 4.42% from 4.29%. Loans to non-financial corporations for amounts up to €1 million increased to 5.72% from 5.56%, while loans above €1 million saw a decrease to 5.59% from 6.10%.