Cyprus inflation rate eases towards year-end

The harmonised consumer price inflation rate dropped to 1.4% in November from 2.6% in October.
One key reason is that prices dropped by 0.8% compared with the year earlier for the heavily weighted category of food.
They also eased for another large category, housing, water electricity and gas, which is influenced by oil prices and high electricity tariffs.
Although housing, water, electricity and gas prices here were 6.7% higher in November 2012 than in November 2011, the inflation rate in this category had dropped from a peak of 11.7% in June.
This is because of a reduction in the levy applied to pay for the damage to the power station from the arms explosion in July 2011.
With effect from August the Electricity Authority of Cyprus reduced the levy from 6.96% to 5.75%.
www.sapientaeconomics.com