According to the Statistical Service of Cyprus (CYSTAT), the industrial producer price index reached 135.2 points (2015 base = 100) in September 2021, recording a decrease of 1.3% compared to the same month of 2020.
From January to September 2021, the index grew by 7.9% compared to the same period in 2020.
In September 2021, compared to August 2021, the indicator increased in the manufacturing sector (+0.2%), in the water supply and materials extraction sector (+28.4%), as well as mines and quarries (+7.0%). Negative indicators were recorded in the field of electricity supply (-10.5%).
In the manufacturing sector, the most significant positive changes compared to September 2020 were presented in the segment of electronic, optical products and electrical equipment (+ 34.5%), furniture production, other production activities, as well as repair and installation of machinery and equipment (+7.4%), food industry (+ 7.3%). The most significant negative changes were observed in the production of refined petroleum products.
As you may know, earlier in Cyprus, the Producer Price Index in construction also increased significantly.
The producer price index covers all stages of production: raw materials, intermediate stages, finished products, 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 growth of the producer price index may be a harbinger of another rise in real estate prices.
There is no doubt that this trend will have a negative impact on the Cyprus real estate sector. Already, a number of developers have been forced to raise prices on new buildings by 10-15% due to a sharp rise in the price of building materials.
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