The government insisted Thursday that its “effective” economic policy is translating into tangible benefits for the average person.

“From the outset, the government has followed a responsible and effective economic policy with a clear target: stable public finances, robust growth, more jobs and gradually rising incomes,” government spokesman Konstantinos Letymbiotis told the press gaggle at the presidential palace.

His remarks came amid news of a sharp spike in the inflation rate this month, while Eurostat data showed that 17.1 per cent of Cypriots were at risk at poverty or social exclusion in 2025; the EU average was 20.9 per cent.

According to the spokesman, the results of the government’s policy are reflected “across all key indicators”.

These indicators take on significance when they have a real impact on society, he added.

“When they create jobs; when they prop up salaries; when they leave bigger space in the family budget; and when they improve, in quantifiable terms, the day-to-day lives of households.”

Letymbiotis cited statistics showing that during the fourth quarter of 2025, average earnings increased by 4.9 per cent while median earnings went up 4.6 per cent.

At the same time, inflation was very low.

“This means a substantive rise in purchasing power,” he asserted.

The spokesman acknowledged inflationary pressures as a result of rising energy prices globally due to the conflict in the Persian Gulf.

“That is why”, he went on, “we continue our efforts with policies that boost the adequacy of wages and support households: raising the minimum wage, the agreement on CoLA, the tax reform, and pension reform – the next emblematic reform of the government.”

Letymbiotis noted that the economic situation “does not improve from one day to the next.

“But the data show that our efforts are paying off. The economy grows stronger. We are supporting employment. Salaries are on the rise.

“That is our goal: growth with a social impact, more disposable income, and a higher standard of living.”