Cyprus inflation eases slightly in July

But not for long
The inflation rate eased slightly in July, as consumer prices rose by 3.7% compared with July 2010, having increased by 4.2% year on year in June.
The main reason for the deceleration was a moderation in the food-price inflation rate, which reached 8.5% in June 2011 but eased to a still high 6.8% in July.
Prices of housing, water, electricity and gas rose the highest, by 9.9% over the year earlier in July, thanks to additional charges relating to carbon pollution.
Electricity prices will rise even higher in the coming months as the electricity authority slaps on additional charges to pay for extra generation capacity to cope with the destruction of the main power station as Vassiliko on July 11 when a cache of 98 containers of ammunition confiscated from Iran exploded.
In January-July 2011, the consumer price index rose by 3.4% compared with the corresponding period of 2010.
Meanwhile, the EU-harmonised consumer price inflation rate eased to 3.5% in July, from 4.5% in June.