Government’s measures on price increases announced belatedly – Better late than never

Statement by AKEL Political Bureau member & Head of the Economic Policy Sector Charis Polycarpou

19 October 2023, AKEL C.C. Press Office, Nicosia

The government of Nikos Christodoulides realised belatedly that the taking of measures to tackle the issue of price increases was a necessity and only after enormous pressure was exerted on it by society. Better late than never.

The measures that have been announced are moving in the right direction and – contrary to the Government’s declared position to date – include a combination of across the board and targeted measures.

We will of course study the measures in order to form a complete picture. However, the mere fact that the Government is reintroducing measures that it itself had hastily abolished just a few months ago demonstrates the wrongness of the policy it has pursued in the past. We also note the Government’s decision to make use of part of the State’s increased revenues, a decision that is in contrast to what was previously being said.

At the same time, it appears that the package of measures is largely focused on short-term measures or measures that dont provide much cover, such as the inability to elaborate a comprehensive interest rate subsidy plan that would covero saw the majority of society.

The government has a responsibility to implement a comprehensive plan and should also proceed with measures of a structural nature, with the aim of combating inflation and inflationary pressures in a comprehensive manner.