Most businesses have seen costs rise up to 30 per cent in past six months | Cyprus Mail

Most businesses said they saw a rise in prices of up to 30 per cent in the past six months, according to the results of a survey published on Friday.

The survey, carried out by employers’ organisation OEV among 637 of its members, included manufacturing companies, service providers, retailers and wholesalers, construction, tourism, and farming businesses.

Close to 70 per cent of respondents said they had seen a rise in prices in the past six months with most, nine out of 10, setting it at 30 per cent.

Around 7 per cent said the increases reached 50 per cent, while 1.9 per cent suggested they were over 50 per cent.

Of those canvassed, 4.9 per cent said they dealt with basic foodstuff like bread and milk, 8.6 per cent traded in widely consumed items, and 86.5 per cent “other products and services.”

The survey found that 89.7 per cent of the businesses attributed the rise in prices to increases in transport costs while 82.1 per cent said there was also a rise in the importation of raw materials.

Around 65 per cent blamed it on the cost of fuel, 56.4 per cent on container costs, and 35.9 per cent to the cost of final products or services.

Most businesses said the rises have affected their profit margins, with 43.6 per cent saying they have seen a 26.9 per cent drop in business.

Among the measures they proposed to alleviate the impact, is a cut in fuel tax, cut of VAT on basic products, state subsidies, and more incentives for renewable energy projects.

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