As the holiday season approaches, Cyprus is experiencing a significant financial divide, with a substantial portion of the population struggling with low incomes. New data reveals that the cost of essential Christmas provisions for these households has risen sharply. While the price of an extravagant Yuletide feast has remained relatively stable, more modest, budget-conscious celebratory meals have experienced a notable price hike. This exacerbates the financial strain on individuals already living on the margins of society.
Recent figures from the Statistical Service of Cyprus present a sobering perspective on income distribution within the nation. A considerable 27.8% of Cypriots currently fall into the lowest income bracket, a group that is disproportionately affected by escalating living expenses. In contrast, a mere 7.6% of the population resides in the highest income bracket, with the majority, 64.6%, occupying the middle-income strata. This uneven distribution indicates that approximately 140,000 individuals, or 14.6% of the population, are precariously close to the poverty line. This is defined by a disposable income of €12,400 or less annually. For context, the national median income for 2024 is €20,666.
The implications of this pronounced income disparity are profound, particularly for vulnerable segments of the population. Worryingly, nearly a third of those in the lowest income bracket are individuals aged over 65. This demographic often faces fixed incomes and increased healthcare expenditures. Furthermore, children and young people also constitute a significant proportion of this economically disadvantaged group. The financial precarity is clearly underscored by the fact that in 2024, a concerning 27% of people within the lowest income bracket reported falling behind on their rent or mortgage payments. This is a clear indicator of their struggle to meet fundamental housing obligations.
Against this backdrop of widespread income vulnerability, a recent survey by the Cyprus Consumers Association has illuminated the escalating cost of festive fare. While the price of a lavish Christmas banquet for four people remains around €160, mirroring last year's figures, the cost of a more economical, yet still celebratory, meal has surged. For a budget-friendly feast for four, consumers can expect to pay €33. This represents a substantial 9% increase compared to the previous year. This rise disproportionately affects lower-income families, for whom such a meal represents a significant expenditure.
The survey also highlighted volatile price movements in specific food items crucial for holiday cooking. While advantageous promotions led to a 12% reduction in lamb prices, other staples experienced dramatic increases. The cost of cucumbers, for instance, rocketed by an alarming 82%, while tomatoes saw a 65% price jump. These fluctuations in the prices of essential ingredients for a modest festive meal suggest that inflation is impacting the affordability of traditional celebrations. This may force difficult choices between essential needs and the desire to partake in customary holiday traditions.