Cyprus harmonised inflation still on course for the euro

Slight rise in December

 

The harmonised inflation rate (HICP) in Cyprus rose slightly in December, to 1.5% compared with the corresponding index of December 2005.

This was slightly higher than in November 2006, when HICP rose by only 1.3% owing to the cut in excise duties on cars.

For the period January-December 2006 the HICP recorded an increase of 2.2%, compared to 2.0% in 2005.

Since the indicative Maastricht target for inflation is about 2.8%, the December performance puts Cyprus on course to meet the inflation requirements for adopting the euro.