A study has revealed that despite being a relatively cheaper country to live in, Cyprus has costlier prices when it comes to furnishings, food and, communication.
The study conducted by Eurostat, which compared the prices of over ten categories of products in an interactive graph, showed the differences in prices between a country and both of its EU and non-EU counterparts.
The data for Cyprus showed that for most products, the price indices were lesser than the EU’s average. For instance, Cyprus’ footwear and clothing price level index (PLI) stood at 95.3 per cent, much lower than the EU’s average of 100. Hotel and restaurants were at a lower level at 87.3, compared to EU’s 100 average. Cultural and recreational activities stood at 91.3, compared to EU’s 100 average. Tobacco and alcohol was at 91.3 compared to EU’s 100 average. Cyprus also has a remarkably low price index for housing – 26.2 percent – much lesser than most EU countries.
Cyprus, however, did show higher PLI levels when it came to some categories. Food, for instance stood at a 106.9 PLI, high than EU’s 100 average. Similarly, communications were priced at 9.7 above the EU’s average PLI. Last but not the least, the PLI for furniture stood at 2.8% higher than the EU average.
Price level index is calculated by taking the present nominal exchange rate of a country and dividing it by its Purchasing power parities (PPPs).