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May inflation drops to two-year low

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Annual inflation in Cyprus dropped to 3.01% in May, continuing its downward trajectory for a seventh consecutive month, mainly driven by the reduction of fuel prices.

Price inflation in May marked the lowest point in the last two years.

According to data released by the Statistical Service, the Consumer Price Index in May increased by 0.33 units reaching 114.72 units compared to 114.39 units in April.

For the first four months of January-May, the CPI increased by 5.2% compared to the same period last year.

The reduction was mainly driven by petroleum products which dropped by 14% annually.

On the contrary, electricity prices recorded an increase of 8.3% year on year.

Analysed by economic origin, the largest positive change was registered in the Food and Non-Alcoholic Beverages category, with an 8.4% rise.

In comparison, the largest negative change was recorded in the category of Transport, with a 5.2% drop.

Since the previous month, the largest change was monitored in Agricultural goods (3.5%).

The largest changes were in Housing, Water, Electricity, Gas and Other Fuels (11.8%) and Food and Non-Alcoholic Beverages (8.5%) in the first five months to May.

Inflation has been on a downward spiral since hitting double-digits last summer.