Cyprus harmonised inflation gallops ahead in December

The EU-harmonised inflation rate in Cyprus followed the path of the national consumer price index in December 2007, galloping ahead to end the year at 3.7%, its highest rate on record.

In December 2006, the rate was only 1.5%. For the year as a whole, the harmonised consumer price inflation rate (HICP) reached 2.2%.

Inflation was on a rising trend almost every month in 2007. The biggest increase was recorded in education, which rose by 4.9%, perhaps as a result of the conversion of the private colleges into universities.

The second largest rise was in the heavily weighted category of food, which rose by 4.8% in 2007.

Price of healthcare goods rose by 4.6%, as 2006 figures were affected by a government-imposed price cut.

Two things did get cheaper in 2007: clothing, helped by a strong euro-linked pound, and communications, helped by competition among internet and mobile phone providers.