Cyprus inflation hits 3.5% as effect of car tax vanishes

The consumer price inflation rate in Cyprus hit 3.5% in November, as the impact of the cut in car excise duties in November 2006 fell out of the index.

Compared with the previous month, the overall consumer price index rose by 0.7%. However, transport prices rose in the same period by a much higher 1.6%. Compared with November 2006, transport prices were up 6.6%.

The Statistical Service CYSTAT also noted increases in the prices of clothing and footwear items, petroleum products, electricity, gas and potatoes.

It said that decreases were recorded in the prices of certain fresh vegetables as well as in the prices of fruit juices, chocolates and bottled water, owing to the decrease in the VAT rate applies to confectionery and other items.

For the period January-November 2007 the CPI recorded an increase of 2.2% compared with the corresponding period of 2006.