A significant decline in demand for a number of consumer goods was recorded during the island’s economic recession between the years 2013-2015. But the decrease in consumer goods prices was not limited to specific items and services but was rather a more general phenomenon. Mainly because the economic recession was the outcome of a downward trend of significant macroeconomic indicators such as consumption and investment.
As a result, prices of important products and services also followed a de-escalation path which continued throughout the island’s recession years, according to data by the Statistical Service. In 2013 and 2014, prices of domestic products (agricultural and industrial) followed a significant downward trend with those of electricity and water recording a 9.6 decrease which is the highest of all. The situation was more or less the same with rental prices, with a recorded drop of 6.1% during that period.
Between 2014-2015, the downward trend in prices continued with the general consumer price index standing at -2.1%. However, the most significant decrease – in the order of -16.3% – was recorded for yet another year in the electricity and water price index. Rental prices also recorded a decline but this slowed down to -1.2%, while the house maintenance and repair price index was at -2%.
However, after the economy recorded positive growth rates – that is from 2016 onwards – the general consumer price index for main goods and services also shifted to a positive sign. Specifically, the percentage change in electricity and water prices between 2016 and 2017 stood at 12.1%, while the upward trend for rents was recorded at 0.8%.
Between 2017 and 2018, the change in electricity and water prices also recorded a positive sign (9.3%), while rents increased by 2.5%. Finally, for the period January-June 2018 and January-June 2019 both the change in the price of electricity and water and that in rentals continued its upward trend reaching 15% and 3.7% respectively.