CYPRUS: Deflationary pressure as prices continue to dip in August

Cyprus annual inflation rate remained in negative territory for a third consecutive month in August at -0.7% as food and energy prices dipped.

In August, the Consumer Price Index increased by 0.30 units and reached 100.32 from 100.02 units in July 2019. Compared to August 2018, the CPI decreased by 0.7%.

The decline was mainly driven by price reductions in the food and non-alcoholic beverages category with -3.2% followed by transport -2.94% and communication with -2.21%.

Since August 2018 the largest change in economic origin was recorded in Petroleum products (-7.9%), while for the previous month, the biggest change was in electricity -5.9%.

Annual price increases were recorded in education at 1.86%, while the inflation rate in household furniture equipment and supplies rose to 1.44%, followed by restaurants and hotels 1.24%. Prices in water electricity and gas rose by 1.23%.

In the period from September 2018 to August 2019, compared to the period from September 2017 to August 2018, the annual average rate of change of the CPI stood at 1.3%, while during the corresponding previous twelve-month period the CPI increased by 0.5%.