Cyprus year-end inflation hits 3.9% in 2007

The year-end consumer inflation rate hit 3.9% in Cyprus in December, as increases in fuel and food prices pushed up the index. 

The consumer price index for December 2007 increased by 0.34 units or 0.32% over the previous month to 108.07 units, compared with 107.73 in November 2007.

The Statistical Service said that this was mainly owing to increases in the prices of certain fresh vegetables, electricity, potatoes, petrol and diesel for motor cars. Decreases were recorded in the prices of heating oil and fresh milk.

The year-end inflation rate (December 2007/ December 2006) was therefore 3.9% compared with 3.5% in November (November 2007/ November 2006).

In December 2006, the year-end inflation rate was only 1.6%.

Cyprus adopted the euro on January 1st. 2008 but the authorities have said that recent inflation has been caused by external factors.

For 2007 as a whole, the CPI recorded an increase of 2.4%. Despite the increase in the second half of the year, this was lower than the annual inflation rate of 2.5% recorded in 2006.

The Statistical Service noted that during 2007 significant increases have been recorded in the prices of petrol (10.8%) as well as in the health services (6.2%), food and non-alcoholic beverages (5.6%), in education (4.9%) and restaurants and hotels (4.2%).