Cyprus inflation at 2.1% lower than eurozone

EU-harmonised consumer price inflation in Cyprus in September 2005 recorded an increase of 2.1% compared to the corresponding index of September 2004, while a year earlier in September 2004, the annual rate of change was 1.8%.

Although inflation has pickek up in previous months, the September rate was lower than the Eurostat’s “flash” estimate for harmonised inflation in the eurozone, which was put at 2.5% in September.

In order to meet the exchange rate criterion for inflation before Cyprus adopts the euro, inflation in must be no more than 1.5% percentage points above the three best-performing states in the EU.

Cyprus therefore looks like it will have few difficulties meeting this target when it is assessed in mid-2007.

For the period January-September 2005 the HICP in Cyprus recorded an increase of 2.1% compared to the corresponding period of 2004.

The 12-month average rate of change, October 2004-September 2005 compared to the index of October 2003-September 2004 was 2.3%.