Cyprus inflation eyes 4%

Consumer price inflation climbed again in May, with prices rising by 3.9% compared with the same period of the previous year.
This is the fourth straight month of increase, and could mean that Cyprus inflation will hit 4% in June.
Inflation has been climbing mainly as a result of high international oil prices, which affect prices of not only transport but also the category of housing, water, electricity and gas, since Cyprus burns expensive heavy fuel oil for well over 90% of its electricity needs.
Attempts to switch to less expensive and cleaner natural gas have been beset by government delays.
For the period January-May 2011, consumer prices rose by 3.1% compared with the corresponding period of 2010.
Compared with the previous month, prices rose by 0.50% in May, mainly owing to increases in the prices of certain fresh fruit, electricity and certain clothing and footwear items.
The Statistical Service reported that falls were recorded in the prices of fresh meat, certain fresh vegetables and purchase of motor cars.
www.sapientaeconomics.com