Prices for certain goods in Cyprus fell by about 5% — Cyprus Mail

In Cyprus, retail prices for some consumer goods fell by about 5% after the introduction of a zero value-added tax rate. The changes were recorded by the Consumer Protection Service at the Ministry of Commerce, Cyprus Mail reports.

Which goods were subject to the zero rate

The zero VAT rate was applied from October 12 to five product categories: bread, milk, coffee, sugar, and baby food. The measure is part of a government support package aimed at addressing the cost of living and will remain in effect until May 31, 2027.

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The Consumer Protection Service analyzed a sample of goods from these categories in major supermarkets, as well as information from the e-kalathi platform. The inspection found that prices for the selected items decreased by 5%.

Price monitoring will continue

The agency emphasized that the results reflect only the current state of the market. The zero VAT rate does not guarantee that prices will remain unchanged in the coming months, as they are also affected by production and supply costs, raw material costs, transportation, and the level of competition. The service said it would continue monitoring the retail market.