Cyprus records deflation for first time in 23 years

Cyprus recorded a negative annual inflation rate for the first time in 23 years in July, as consumer prices fell by 0.8% compared with July 2008.
The last time Cyprus recorded negative annual inflation was in October 1986.
The biggest fall was recorded in transport, down 11.1%, where prices were depressed by falling international oil prices. For similar reasons, prices of housing, water, (oil-fired) electricity and gas were down 3.7%.
However, recessionary tendencies could be seen in prices of clothing and footwear, which were down by 7.5% compared with July 2008.
Compared with the previous month, consumer prices in July dropped by 1.6% over the previous month.
The Statistical Service said that this was mainly owing to summer sales, which led to decreases in the prices of clothing, footwear and furnishing, as well as to decreases in the prices of certain fresh fruit and vegetables.
Increases were recorded in the prices of potatoes, electricity and gas.
For the period January-July 2009, the CPI recorded an increase of 0.5% compared to the corresponding period of 2008.