prices

No fuel to run the economy

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No fuel to run the economy

Inflation in Cyprus was reported to be lower than expected and below the Eurozone target average of 2%. Despite this, the real economy is facing challenges with small to medium-sized enterprises closing almost daily due to rising electricity costs and fuel prices, which are expected to increase further due to a rise in world crude prices. Small businesses are also burdened by local fees and taxes. The consumers’ association criticized the Energy Ministry for a lack of transparency regarding the formula for determining fuel prices at the pump, suggesting that more openness could have reduced fuel prices by about 3-4 cents a litre during October to December. Additionally, the price of olive oil increased by 54% over the past year, with a further 3.4% increase in February. Some goods and services have helped keep the consumer price index in check, but prices in several sectors continue to rise due to a lack of healthy competition in the Cyprus economy. The “photovoltaics for all” scheme has been criticized for not adequately supporting households unable to invest in lower-energy appliances. The current administration has been reluctant to introduce more support measures for vulnerable people, aiming to maintain a sound fiscal policy.

JPMorgan credits Ethereum for Crypto boost; Whales favoring this new AI Altcoin over Solana

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JPMorgan credits Ethereum for Crypto boost; Whales favoring this new AI Altcoin over Solana

– JPMorgan analysts identify Ethereum (ETH) as a significant reason for the surge in crypto retail interest, attributing it to two developments: the Dencun upgrade and the potential approval of spot Ethereum ETFs.
– Whale interest in the new AI altcoin InQubeta (QUBE) is increasing, while market sentiment for Solana (SOL) is declining.
– InQubeta, merging blockchain and artificial intelligence industries, offers a crowdfunding model backed by NFTs, allowing equity in AI tech startups to be fractionated and owned through NFTs.
– InQubeta’s presale is nearing completion of its eighth stage, with over 861 million QUBE tokens sold, and a price increase expected after this stage.
– The ICO employs a deflationary token burn model and a buy-and-sell tax to fund rewards for users who stake their QUBE tokens.
– Ethereum’s upcoming Dencun upgrade is set to enhance scalability, efficiency, and security, and reduce transaction fees on layer 2. The SEC’s decision on spot ETH ETFs is awaited, with some skepticism regarding Ethereum’s classification as a security or commodity.
– Solana (SOL) shows a bullish trend and has surpassed other smart contract blockchains in total value locked (TVL), indicating a potential rally.
– The crypto market rally is attributed to Ethereum, with declining whale interest in Solana as investors explore projects like InQubeta with unique offerings.

Our View: Sugarcoating unpopular policies cannot work indefinitely

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Our View: Sugarcoating unpopular policies cannot work indefinitely

Finance Minister Makis Keravnos of the Christodoulides government claims that green taxation plans will significantly benefit the public, despite concerns about the increased costs for fuel, water, and mandatory energy upgrades for buildings. The consumer tax reduction on fuel is ending, and a new green tax is expected to increase fuel prices by 14 to 15 cents per litre. Keravnos argues that green taxation will discourage energy and resource waste, and claims that revenue from the carbon tax will be returned to businesses and households, though specifics are not provided. Critics argue that the green taxes will increase the cost of living and inflation, as businesses pass on higher costs to consumers. There is also concern about the government’s decision-making regarding energy tariffs and subsidies, with suggestions that temporary tax relief measures are not sustainable and could harm public finances. The government is under pressure to extend fuel tax discounts and electricity bill subsidies, despite the need for fiscal responsibility and addressing inflation.

The hidden costs of feeding the world

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The hidden costs of feeding the world

Kathleen Merrigan finds that the true cost of food is far higher than what consumers pay at the checkout counter, taking into account economic, environmental, social, and health impacts. The United Nations Food and Agriculture Organization’s 2023 report using true cost accounting reveals that the global cost of the agrifood system in 2020 was up to US.7 trillion more than retail prices, about 10% of global GDP or per person per day worldwide. Hidden costs in wealthy countries are mainly due to unhealthy dietary patterns, while in low-income countries, they stem from poverty and undernourishment. Environmental costs, including nitrogen runoff and greenhouse gas emissions, represent about 20% of the global hidden costs. True cost accounting could guide policy changes, potentially reallocating 0 billion in agricultural subsidies worldwide to support more sustainable and equitable food production methods.

In State of the Union, Biden to sharpen contrast with Trump

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In State of the Union, Biden to sharpen contrast with Trump

U.S. President Joe Biden will use his fourth State of the Union address to highlight differences between him and Donald Trump, discuss the strong economy, advocate for higher taxes on the wealthy, and address concerns about his age. The address is part of a constitutional requirement for the president to report to Congress on the state of the union. It will take place at 9 p.m. (1400 GMT) before a joint session of the House of Representatives and the Senate, and will be nationally televised. Polls show Biden and Trump closely tied in battleground states, with most U.S. voters not enthusiastic about a rematch. Biden aims to convince voters of his efforts to protect democracy, abortion rights, and reduce costs. He will propose tax reforms targeting wealthy Americans and large corporations, support for unions, and highlight legislative successes. Biden will also emphasize U.S. leadership globally, including support for Ukraine and Israel, and push for a billion aid package. House Speaker Mike Johnson criticized Biden’s impact on the U.S. economy and reputation. The economy is performing well, but Republican voters are dissatisfied, according to polls. Biden’s campaign plans to criticize Trump on various issues. The NAACP has released a policy agenda for Biden’s address, focusing on voting rights and criminal justice reform. Concerns about Biden’s fitness for a second term due to his age will be scrutinized during his speech. White House press secretary Karine Jean-Pierre mentioned Biden’s accomplishments and his work on the speech at Camp David.

ECB takes small step towards rate cut as inflation falls

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ECB takes small step towards rate cut as inflation falls

The European Central Bank (ECB) maintained borrowing costs at record highs but indicated a move towards reducing them, noting that inflation is decreasing faster than expected. The ECB’s main interest rate remains at 4.0 percent, reflecting a continued decrease in inflation over the past 1.5 years and revised, lower economic projections. Despite this, domestic price pressures, including wages, are still high. The ECB plans to base future decisions on the path of underlying inflation. It is unlikely to lower borrowing costs before its June 6 meeting, with crucial wage data expected in May. The ECB has revised its inflation forecast for this year from 2.7 percent to 2.3 percent, suggesting it might achieve its 2 percent inflation target earlier than the previously expected 2025. However, core inflation, excluding food and fuel, remains at 3.1 percent. Economic growth in the eurozone is projected to be 0.6 percent, down from a previous estimate of 0.8 percent.

Food prices surging uncontrollably, as vegetables see 26.5% monthly rise

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Food prices surging uncontrollably, as vegetables see 26.5% monthly rise

– In February, the price of fresh vegetables increased by 26.5% compared to January, according to the Cyprus Consumers’ Association.
– The general price of vegetables rose by 15.7% during the same period.
– The price of potatoes increased by 6.81%.
– Fresh fruits experienced a price increase of 3.78%.
– Meat preparations saw a price increase of 7.64%.
– Chocolate prices went up by 6.97%.
– Men’s clothing and footwear prices increased by 6.06%.
– Cutlery and silverware prices decreased by 6.52%.
– Edible oils other than olive oil saw a price reduction of 4.55%.
– The price of electricity fell by 2.1% compared to January 2024.
– Year-on-year, olive oil prices rose by 54.34%.
– Fresh vegetables and fresh fruits prices increased by 26.55% and 23.36% respectively, year-on-year.
– Prices of edible oils other than olive oil decreased by 18.55% compared to last year.
– Sugar prices fell by 13.06% year-on-year.
– Footwear for infants and children prices decreased by 8.25%.
– Liquid fuels prices dropped by 8.03% year-on-year.
– The comparison was made against January 2023.

Cyprus inflation up 1.8% in February

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Cyprus inflation up 1.8% in February

The monthly Cyprus consumer price index (CPI) increased by 1.03 points to 114.93 in February, from 113.90 in January. The inflation rate rose by 1.8% from February last year. The CPI rate was up 0.9% from January and 1.75% higher for January-February compared to the same period last year. The largest change from February 2023 was in services (+3.7%), with the largest monthly change in agricultural goods (+5.6%) and the largest change compared to February 2023 in restaurants and hotels (+6.2%). The largest changes from January in the CPI for February were in clothing and footwear (+3.1%) and in food and non-alcoholic beverages (+2.7%). For January–February, compared to the same period last year, the largest changes were in restaurants and hotels (5.9%) and miscellaneous goods and services (3.7%). Year-on-year, February saw the biggest increases in restaurants and hotels (0.62) and food and non-alcoholic beverages (0.43). Catering services (0.60) had the most notable effect on the change of the February CPI compared to the same month last year, while the price of fresh vegetables (0.38) had the largest effect on the change of the February CPI compared to January this year. The CPI calculation includes a weight distribution for the four districts: Nicosia 42%, Limassol 30%, Larnaca 18%, and Paphos 10%. Prices of 805 goods and services are recorded monthly, except for some seasonal products, meat, and fuels, whose prices are collected weekly.

President warns of impending fuel price surge

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President warns of impending fuel price surge

President Nikos Christodoulides warned of significant increases in motor fuel prices at the end of the month due to the end of reduced consumption tax and the introduction of a green tax. The end of the consumption tax reduction is expected to raise gasoline and diesel prices by 8.3 cents per litre, with an additional 5 cents possible from the green tax. The finance ministry aims for the green tax to start on April 1, as part of the Recovery and Resilience Plan. This could lead to at least a 14-15 cent increase per litre in fuel prices. The average price for 95 octane gasoline in Cyprus was €1.38 per litre, and diesel was €1.51 per litre. Prices are not expected to exceed the July 2022 record of €1.83 per litre soon. However, the green tax is set to increase yearly, reaching 25 cents by 2033, with VAT also applied. The Carbon Tax on Energy Products Act 2023 proposes this tax increase, affecting motor fuels, manufacturing fuels, and polluting industries.

Turkey inflation rises to 67%, keeping pressure on cenbank

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Turkey inflation rises to 67%, keeping pressure on cenbank

Turkey’s annual inflation rate increased to 67.07% in February, with significant price rises in food, hotels, and education. Finance Minister Mehmet Simsek indicated inflation would remain high in the near term due to base effects and the delayed impact of rate hikes but expected it to decrease over the next 12 months. The central bank has raised interest rates by 3,650 basis points since June, reaching a 45% policy rate, which it deems sufficient to reduce inflation. However, economists suggest further tightening may be necessary due to continued price pressure and strong domestic demand. Monthly consumer price inflation was 4.53%, down from 6.70% in January but above expectations. The Turkish lira has weakened by 6% this year after a nearly 37% decline in 2023, affecting import prices. Price increases were most notable in restaurants and hotels at 94.5%, education at 91.8%, and food and non-alcoholic drinks at 71.1%. The central bank aims to maintain tight monetary policy to achieve its 36% year-end inflation target, while the domestic producer price index rose by 3.74% month-on-month in February for an annual increase of 47.29%.