CYPRUS: Inflation falls to lowest level in three years

Cyprus` annual harmonized inflation in November reached its lowest level over the last three years, recording a sharp decrease of 1.4% compared to 4% in November 2011, according to data released on Tuesday by the Statistical Service of Cyprus.

The latest figure was the lowest since November 2009, when harmonized inflation stood at 1% on a 12-month basis. In 2009, Cyprus recorded deflation for four months in a row (July, August, September and October).

The significant slowdown in November 2012 inflation was due to a decrease of 2.4% in prices of goods or services included in the categories of "Clothing and footwear", "Furnishings, household equipment and cleaning products," "Food and non-alcoholic beverages" and "other goods and services."

On the other hand, a significant increase was recorded in prices concerning mainly the categories of "Housing, water, electricity and gas", "Transport" and "Alcoholic beverages and tobacco."

In October of this year, harmonized inflation stood at 2.6% on a 12-month basis.

In the current year, except October and November, the growth rate of the harmonized inflation ranged between 2.9% (June) and 4.5% (August) on a 12-month basis.

Moreover, in the period January – November 2012, the harmonized inflation or consumer price index stood at 3.3% compared to the same period of 2011.