**Nicosia, Cyprus** – As the festive season approaches, a stark financial dichotomy is emerging across Cyprus, with new data revealing that a considerable segment of the population is grappling with low incomes while the cost of essential Christmas provisions for these households has risen sharply. While the price of an extravagant Yuletide spread has remained relatively static, the more modest, budget-conscious celebratory meal has seen a significant price hike, exacerbating the financial strain on those already at the margins.
Recent figures released by the Statistical Service of Cyprus paint a sobering picture of income distribution. A substantial 27.8% of the Cypriot population falls into the lowest income bracket, a group disproportionately burdened by rising living expenses. In stark contrast, only 7.6% of the population resides in the highest income bracket, with the majority, 64.6%, occupying the middle-income strata. This uneven distribution means that approximately 140,000 individuals, or 14.6% of the population, are teetering on the precipice of poverty, defined by a disposable income of €12,400 or less annually. For context, the national median income for 2024 stands at €20,666, with individuals earning below 75% of this figure, equating to roughly €15,500 or less, being classified within the lower income demographic.
The implications of this income disparity are profound, particularly for vulnerable groups. Worryingly, nearly a third of those in the lowest income bracket are individuals aged over 65, a demographic often facing fixed incomes and increased healthcare costs. Furthermore, children and young people also constitute a significant proportion of this economically disadvantaged segment. The financial precarity is 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, a clear indicator of their struggle to meet fundamental housing obligations.
Against this backdrop of widespread income vulnerability, the Cyprus Consumers Association's recent survey, conducted between December 10th and 19th, has illuminated the escalating cost of festive fare. While the price of a lavish Christmas banquet for four people remains around €160, and for six people approximately €227 – 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, and for six, €49. This represents a substantial 9% increase compared to the previous year, a rise that disproportionately affects lower-income families for whom such a meal is 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. Potatoes, a perennial favourite, also became more expensive, with a 10% increase. These fluctuations in the prices of essential ingredients for a modest festive meal suggest that inflation is impacting the affordability of traditional celebrations for those with limited financial resources, potentially forcing difficult choices between essential needs and the desire to partake in customary holiday traditions. The disparity in cost increases underscores a concerning trend where market forces disproportionately penalise those least able to absorb rising expenses, casting a shadow over what should be a period of joy and togetherness.