Cyprus -0.8% inflation rate third lowest in EU

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At -0.8% Cyprus had the third-lowest annual inflation rate in the European Union in January behind Greece (-2.4%), Slovenia (-0.9%), data showed on Tuesday.

Cyprus’ Harmonized Index of Consumer Prices declined 0.8% in January, remaining in negative territory for 10 consecutive months, according to the Statistical Service of Cyprus (CyStat).

The HCIP in January 2021 amounted to 98.41 units compared with 99.24 in December 2020 marking a reduction of -0.8% both monthly and annually.

Compared to January 2020, the category of Housing, Water, Electricity, Gas and Other Fuels had the largest negative change with -5.3%, while Clothing and Footwear (+5.4%) had the largest positive change.

Compared to December 2020, the largest price drop was recorded in Clothing and Footwear (-13.9%).

The largest change when compared to the index of January 2020 was in Energy prices (-10.7%).

When compared to the index of the previous month, the largest change was monitored in non-energy industrial goods at -3.4%.

Europe inflation

The euro area annual inflation rate was 0.9% in January, up from -0.3% in December.

A year earlier, the rate was 1.4%, according to figures published today by Eurostat.

European Union annual inflation was 1.2% in January 2021, up from 0.3% in December. A year earlier, the rate was 1.7%.

The lowest annual rates were registered in Greece (-2.4%), Slovenia (-0.9%) and Cyprus (-0.8%).

The highest annual rates were recorded in Poland (3.6%), Hungary (2.9%) and Czech Republic (2.2%).

Compared with December, annual inflation fell in three EU states, remained stable in six and rose in 18.

In January, the highest contribution to the annual euro area inflation rate came from services (+0.65 percentage points, pp), followed by non-energy industrial goods (+0.37 pp), food, alcohol & tobacco (+0.30 pp) and energy (-0.41 pp).