Cyprus construction materials prices up faster than inflation

Watch out house prices

The price of construction materials continues to rise faster than overall consumer prices.

According to the Statistical Service CYSTAT, the price index of construction materials for August 2006 reached 132.41 units (base year 2000=100.00), recording a rise of 5.9% compared with August 2005, while inflation in the same month was 3.1%.

For the period January-August 2006, the index of construction materials prices recorded an increase of 5.4% over the corresponding period of the previous year, while inflation was up 2.9%.

Studies show that the cost of materials has a strong impact on the price of residential property. According to the BuySell Home Price Index, residential property prices rose by 4.7% in Jan-August compared with the same period of 2005. F.M.