Cyprus inflation eases to 2.5% in 2006

The consumer price index for December shows that Cyprus managed to scrape a slight fall in the inflation rate in 2006, to 2.5% from 2.6% in 2005.

The Statistical Service reported that petrol prices, which increased by 8.1%, had a significant impact on the inflation for 2006, while increases were also recorded in the categories of food items (4.8%), housing and electricity (4.9%) and education (4.7%). Decreases were recorded in the price indices of communication, clothing and footwear.

A fall of petrol prices in the last four months of 2006, together with the reduction of car prices since November 2006, had a favourable effect on keeping inflation at 2.5% in 2006.

In December alone, the Consumer Price Index for December 2006 decreased by 0.06 units or 0.06% to 104.00 units compared to 104.06 in November 2006.

The Statistical Service reported that this is mainly owing to decreases in the prices of potatoes and electricity. Increases were recorded in the prices of certain fresh vegetables.

The year-end inflation rate – the index in December 2006 compared to December 2005 – was 1.6%.