Consumer prices rose by 3.42 per cent in October

THE cost of living in North Cyprus rose by 3.42 per cent in October, according to the latest official figures.

Data published by the Statistical Institute on Thursday showed that the prices of consumer goods and services have risen by an average of 81.64 per cent since the start of 2022.

However the annual inflation rate, which compares prices with the same month in 2021, rose only slightly, from 120.32 per cent in September to 120.72 per cent in October, suggesting that the rate at which prices are going up may have reached its peak.

The top three items with the highest price increases in October were artificial pitch rental fees, which went up 85.82 per cent, children’s cardigans made of “mixed wool”, up by 85.54 per cent, and cucumbers (82.50 per cent).

The first three goods with the highest average price decreases were lemons, down by 45.05 per cent, pomegranates (-44.30 per cent), and lettuce (-31.76 per cent).

Looking at prices changes in terms of the main expenditure groups, the biggest price rises in October came in the “Clothing and Footwear” category, averaging 28.54 per cent.

That was followed by “Food and Non-Alcoholic Beverages” (5.97 per cent), “Entertainment and Culture” (4.57 per cent), “Furniture, Home Appliances and Home Care Services” (3.61 per cent), “Transportation” (2.79 per cent), “Miscellaneous Goods and Services” (2.44 per cent), “Health” (2.07 per cent), “Communications” (1.76 per cent), “Alcoholic Beverages and Tobacco” (1 per cent), “Education” (0.32 per cent), and “Housing, Water, Electricity, Gas and Other Fuels” (0.01 per cent).

The “Restaurants and Hotels” category was the only main expenditure group that saw average prices fall, albeit by just 0.1 per cent.

Compared to the previous month, the average prices of 469 items in the Consumer Prices Index increased, while the average prices of 85 items decreased.

MINIMUM WAGE

Meanwhile Labour and Social Security Minister Hasan Taçoy has indicated that the minimum wage for the private sector will rise in line with inflation.

The most recent increase in the minimum wage was in July, when the gross monthly amount went up by around 41 per cent from 7,000TL (6,090TL net) to 9,885TL (8,600TL net).

But the increase was criticised by trade unions at the time for being well below the 56.76 per cent rate of inflation recorded during the first six months of 2022, which was the amount by which public sector salaries were increased in July.

Speaking during a TV interview on Thursday, Mr Taçoy said: “If the [increase in] the cost of living is 30 per cent, it [the increase in the minimum wage] will be 30 per cent, if it is 40 per cent, it will be 40 per cent.”

Ahmet Serdaroğlu, head of the Federation of Free Trade Unions (Hür-İş), said that unions have already begun efforts to determine a new minimum wage before the end of the year, which would be the third increase of 2022.

Mr Serdaroğlu said that the current low pay rate is “below the poverty line” and called on the government to convene a meeting of the Minimum Wage Determination Commission as soon as possible.

He added that the cost of living has risen by around 25 per cent since July, and that private sector workers earning the minimum wage are still “owed” a 15 per cent increase based on inflation from January to June.