Cyprus records deflation again in August

The consumer price inflation rate in Cyprus recorded its second consecutive month of decline in August, falling by 0.99% compared with a fall of 0.80% in July.
However, on a month on month basis, consumer price inflation rose by 0.17% in August, having fallen by 1.73% in July.
The biggest turnaround in prices in August was food and non-alcoholic beverages, prices of which fell by 0.71% compared with August 2008.
Until then, food prices had been rising at well above the rate of inflation.
Prices at restaurants and hotels, on the other hand, continue to inch up, rising by 0.45% over the previous month in August, despite the collapse in tourism arrivals.
Compared with the same period of the previous year, prices in restaurants and hotels were 5.46% higher in August 2009 than in August 2008.
For the period January to August, prices were 0.3% higher than in 2008.