The Cyprus Producer Price Index (PPI) for the first quarter of 2021 increased by 2.2% to 113.43 points (based on 2015 = 100.00).
At the same time, according to the Statistical Service of the country, compared to the corresponding quarter of last year, the indicator remained at the same level.
If we look at the types of projects, in the first quarter of 2021 compared to the corresponding quarter of 2020, the growth of the index for commercial buildings increased by 3.4%, and for residential projects - by 10.2%.
As you may know, the producer price index is an indicator of the average level of change in wholesale prices for raw materials and intermediate consumption goods.
The producer price index covers all stages of production: raw materials, intermediate stages, finished goods, as well as all sectors. Thus, its main difference from the consumer price index is that it covers only goods, not services, and at the wholesale level of their implementation.
The rise in the producer price index may be a harbinger of another rise in property prices.
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