THERE was no noticeable change in the cost of consumer goods for October, the latest government price watch has shown.
The survey covered 346 items available in supermarkets, bakeries and butcher’s shops, including basic foodstuffs, and housecleaning and personal hygiene products.
According to the Ministry of Commerce, by and large prices appear to have “stabilised”, with Nicosia showing the most significant decreases compared to the other three major cities.
The survey compared prices between different supermarkets.
In many cases, the figures quoted are almost identical to those published in September. In Nicosia, a cheesecake cost 55 cents at Orphanides, 68 cents at Carrefour and 85 cents at Zorbas bakeries.
In Limassol, Pittas halloumi 1kg went for £5.93 at Orphanides, £6.30 at Debenhams and £6.17 at Carrefour. But Papas Supermarket had it for as high as £7.29.
In Larnaca, calamari was the most expensive at Orphanides at £4.95, with Carrefour selling it for £3.99 and Stelios Supermarket for £3.50
For cereals, Uncle Ben’s rice 500gr cost 73 cents at Orphanides, £1.3 pounds at Debenhams and 75 cents at Carrefour. This was for Paphos.
For the above locations, Heinz tomato ketchup 300ml was 98 cents, £1.08 and 98 cents, respectively. And a pack of Lays chips (100gr) cost 46 cents, 46 cents and 44 cents.
The new prices did not take into account the drop in VAT on a range of goods and services that was announced on October 19. The survey was conducted from October 22 to 24.
The VAT cut affected fizzy drinks, numerous types of confectioneries and chocolate (but not biscuits), bottled water and juices, contraceptive products, female hygiene products, medical equipment for the disabled, tickets to funfairs, concerts, museums, zoos, cinemas and sports events, hairdressers and renovation and reconstruction of homes.
The Commerce Ministry said the VAT change was not reflected in the latest survey because of businesses’ delays in updating their price list.
However, it added, subsequent inspections by the Competition and Consumer Protection Service from October 26 to November 2 revealed about a 90 per cent “compliance rate.”
Loukas Aristodemou, chairman of the Cyprus Consumers Union & Quality of Life, a non-profit NGO, agreed with this assessment.
He told the Mail they carried out their own impromptu checks at supermarkets a few days after after the VAT announcement, and found that about 90 to 95 per cent of prices had been revised.
“We’ve had some isolated complaints about shops not slashing VAT from 15 to 5 per cent… but in general, it has to be said that supermarkets, which are highly organised, have responded.”
And Petros Markou of the Consumers Association said the survey was a useful tool for shoppers, as it heightened awareness among the public of what’s available would force businesses to turn more competitive.
“Let’s hope it will also do away with some over-the-top prices out there,” he said.
However, the harmonised index of consumer prices (HICP) for October 2007 released yesterday showed a further rise in the cost of living.
The index contains both consumer goods and services and amenities, such as transport, education and recreation and culture.
The index went up 2.7 per cent on the same month last year. The sharpest rise occurred in health services with a 4.9 per cent increase, followed by 4.8 per cent in education and 4.7 per cent for restaurants and hotels.
Housing, water, electricity and gas also went up by 4.5 per cent. Meanwhile more bad news yesterday, with gas cylinders, used in domestic purposes for heating and cooking, slated to go up by 30 cents.
Not a single category of goods or services became cheaper in this time period. Alcoholic beverages and tobacco remained exactly the same.
According to the Finance Ministry, inflation in 2007 will be 2.5 per cent, reaching 3.3 per cent in 2008.
The growth of inflation in 2008 would result from new increases in VAT required by EU law, and the expected high levels of oil prices.
