CYPRUS: Inflation drops -0.7% in August

The rate of inflation continued to fall, decreasing by -0.7% in August, compared to a -0.6% drop in July and -0.9% in August 2013.
According to the Statistical Service Cystat, the Consumer Price Index for August decreased by 0,28 units or 0.24% to 117,07 units compared to 117,35 in July.
This is mainly due to decreases in the prices of air travel, petroleum products and certain fresh fruit and vegetables. An increase has been recorded in the price of electricity.
For the January-August period, the CPI recorded a decrease of -1.7% compared to the corresponding period of 2013.
This follows an announcement on Wednesday that GDP shrank in real terms by 2.2% during the second quarter of this year compared with the same quarter of the previous year.
According to the Cystat data, GDP stood at €3,494 mln in the 2nd quarter of 2014 compared to €3,571.2 mln in the same quarter of 2013.
Based on seasonally and working day adjusted data, it is estimated that the GDP shrank by 2.5% compared to the same period of 2013, and 0.3% compared to the previous quarter.
Positive growth rates were recorded in tourism and trade, while negative rates were recorded in manufacturing and construction.