Inflation drops sharply to 1.43% in Oct

The easing of international oil prices continues to have a dramatic impact on inflation in Cyprus, with consumer price inflation dropping to 1.43% in October, down from 2.38% in September and more than 3% in May-August.

The Statistical Service reported that the main reasons for the huge drop in October were falling petrol prices, and a high baseline in October 2005, when there was a large increase in food, fuels, clothing and footwear.

Transport prices actually fell year on year by 1.86% in October, having risen by a peak of 5.96% in June.

Prices still rose compared with the previous month, however, by 0.58%, as increases in the prices of clothing, footwear and certain fresh vegetables offset falls in the prices of petroleum products and certain fresh fruit.

From a peak of 2.95% in August, year-to-date inflation fell to 2.73% in Jan-Oct 2006 compared to the corresponding period of 2005. F.M.