Deflation recorded for second consecutive month in Cyprus

Deflation was recorded for a second consecutive month in May 2013, according to data released by the Statistical Service of Cyprus, indicating the effects on consumer habits of the recession and high unemployment in Cyprus, and the Eurogroup decision of March.

According to the Statistical Service, the rate of inflation for May 2013 continued in negative ground and dropped further to -0.7% compared to -0.3% in April 2013 and 2.9% in May 2012.

Negative inflation of -0.3% had also been recorded in April 2013.

For the period January-May 2013, the Consumer Price Index recorded an increase of 0.7% compared to the corresponding period of 2012.

The Consumer Price Index for May 2013 decreased by 0.03 units or 0.03% to 119.66 units compared to 119.69 in April 2013.

This is mainly due to decreases in the prices of electricity, certain fresh vegetables, petroleum products, potatoes and rents. Increases have been recorded in the prices of certain clothing and footwear items, certain fresh fruit and air fares.

In March 2013, inflation had increased by 1.1%, on an annual basis, in February 1.64% and in January 1.83%.