Cyprus inflation rate eases to 5.4% in August

The drop in oil prices appears to have had an immediate impact on inflation in August, as the consumer price inflation rate eased to 5.4% from 5.6% in July, although it was still well above the 2.5% recorded n August 2007.
For the period January-August 2008, the CPI recorded an increase of 5.0% compared to the corresponding period of 2007.
As we reported in the Financial Mirror print edition this week, the Finance Minister, Charilaos Stavrakis, said that the gradual reduction in inflation had already begun and that he expected inflation to be below 3% in 2009.
Compared with July, the CPI in August 2008, increased by 0.36% to 110.24, compared with 109.85 in July 2008.
The Statistical Service reported that this was mainly owing to increases in the prices of certain fresh vegetables and electricity.
Decreases were recorded in the prices of petroleum products and certain clothing items.