Cyprus clothes prices spike ahead of euro adoption

Inflation reaches 3% in October

The consumer price inflation rate rose again in October, hitting 3% year on year for the first time in over a year, while the movement in clothes prices raises questions about profiteering by clothing retailers.

Compared with the previous month, the overall consumer price index rose by 0.9% to 106.95.

However, clothing and footwear rose by an astonishing 14.9% compared with the previous month, having recorded a big rise of 6.6% in September.

Prices of clothes did drop steeply during the sales period of July and August, but the As part of Cyprusâ€™s preparations to adopt the euro in January 2008 retailers have been obliged since September begin displaying prices both in Cyprus pounds and in euros. two increases in September and October more than made up for the sales-times falls.

Such a big move in one month suggests that retailers have taken the opportunity of the dual pricing period to adjust their prices upwards.

For the period January-October 2007 the CPI recorded an increase of 2.1% compared to the corresponding period of 2006.

Fiona Mullen