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Cyprus to Revamp Consumer Price Index Calculation

Published January 1, 2026, 05:07
Cyprus to Revamp Consumer Price Index Calculation

The Statistical Service of Cyprus has announced significant changes to the way the Consumer Price Index (CPI) is calculated, which is used to measure inflation. These changes, which will be implemented from January 2026, are a result of European regulations and the findings of the household budget survey conducted between April 2023 and March 2024. The main areas of change include updating the weighting coefficients of products, implementing a new classification system, changing the base year from 2015 to 2025, and diversifying the composition of the products included in the CPI, or the "household basket". The "household basket" will include 850 goods and services, an increase of 45 compared to the previous one, with the addition of 130 new and the removal of 85 existing items. The selection of products is based on current household consumption expenditure, as revealed by the household budget survey. This reflects changes in consumer habits, influenced by factors such as the GESY and technology. Despite the changes, the Statistical Service assures that the way inflation is measured will not fundamentally change. However, the diversification of products and their new weighting in the CPI may affect the final percentage increase or decrease in prices.