CONCERNS over increasing prices cast a shadow over the launch of dual pricing in euros, which comes into effect today heralding the advent of the single currency in only four months’ time.
As of today, all prices must be shown in Cyprus pounds and euros so that consumers will know the price of a given item on January 1.
Finance Minister Michalis Sarris held a news conference yesterday to announce the official start of the dual pricing period, which he called the final stretch before entry to the eurozone.
“This is an important aspect of preparation and information for Cypriots for the smooth introduction of the euro,” he said.
“All the indications are that the business community is ready,” Sarris added.
“The role of dual pricing is also important for consumers because they will have four months to monitor prices, so when the time comes to pay only in euros they will be familiar and informed and have a good knowledge of the exchange rate.”
While the Ministry would be checking shops to ensure the dual pricing was in place, “from the other side we will approach it practically and we won’t hang anyone because they were a little late or didn’t do it quite in the right way,” Sarris said.
Despite Sarris’ optimism about the dual display, the biggest issue raised at the news conference was the ever increasing rise in prices, which has been in the news over the past few weeks.
Quizzed over what was happening, Sarris did admit there could be more transparency from big businesses. He had actually met the bigger importers earlier yesterday, he said.
“We have agreed that there could be more transparency and that they could explain to the supermarkets and other customers the reasons why they were forced to increase their prices,” said Sarris.
“But they did tell us they would keep their prices as low as they could.”
He also said he found it hard to believe that all of the island’s businesses could get together and agree to increase prices or that there was a “systematic effort to rip off consumers”.
“Inflation is a phenomenon in all economies,” said Sarris. He said that in the first seven months of the year inflation was 1.8 per cent. In August it was higher at 2.3 per cent.
“But we believe it has nothing to do with the adoption of the euro,” he said, adding that the increases had to do with the global price of cereals.
He also said some products might have gone up such as foodstuffs but he said other products were going down in price. He said naturally it was the price of foodstuffs that would make the biggest impression on consumers since it was something they spent on every day.
“The Cyprus economy is a competitive economy so why would they increase prices that are not necessary because that is the way to lose customers,” Sarris said.
He again stressed that prices were being monitored by the euro observatories and that any abuses would be dealt with.
