Cyprus inflation drops in September

The inflation rate dropped in September to 2.4%, after recording 2.9% in August 2011 and 3.5% in September 2010.
The main reason was a decline compared with the year earlier in the heavily weighted category of food and non-alcoholic beverages. Prices in September 2011 declined by 0.3% compared with September 2010—a month in which prices had risen by 7.2% over the same month of 2009.
Transport price inflation eased to 1.6% in September, from 3.3% over the year earlier in August, perhaps owing to a drop in international oil prices.
But electricity, gas, water and housing prices continued to surge ahead, rising by 11.9% over the year earlier, from an increase of 10.5% in August.
As a result of higher electricity tariffs, prices of housing, water electricity and gas rose by 9.2% in the first nine months of 2009 compared with the same period of 2010.
Compared with the previous months the index for September increased by 0.78%.
The Statistical Service said that this was mainly owing to increases in the prices of certain clothing and footwear items, electricity, certain fresh fruit, items of jewellery and tuition fees of private educational institutions and part-time education coaching centres. Decreases have been recorded in the prices of air fares and petroleum products.
For the period January-September 2011, the CPI recorded an increase of 3.2% compared with the corresponding period of 2010.