Cyprus inflation eases in November

Inflation as measured by the consumer price index eased to 2.9% year on year in November, compared with 3.1% in October, according to statistics released by the Statistical Service CYSTAT on Thursday.

On a month-on-month basis, prices rose by 0.4% in November, compared with a mont-on-month rise of 1.1% in October.

Government intervention appears to have been one of the primary reasons for the lower rate. In November the government cut tariffs on fuel and this contributed to a 2% month-on-month fall in the price of transport.

However, high fuel prices compared with last year means that transport costs were still 3.8% higher than in November 2004.

High fuel costs, which have hit the profits of certain food retailers, may also be behind the steady increase in food prices. They rose by 1.5% compared with the previous month in November and were 4% higher than in November 2004.

Prices of clothing and footwear rose sharply by 5.8% compared with the previous month. However, this seems to have been for seasonal reasons, since prices are down 0.1% compared with November 2004.

The data, which are normally gathered up to the last few days of any given month, were released with ligtning speed this time, the day after the end of the month, possibly because the statisticians are preparing for the revamp of the index that takes place from January.

Fiona Mullen