Cyprus inflation rate drops to 1.07% in November

The consumer price index (CPI) in November 2006 rose by only 0.21% over the previous month to 104.06, thanks to decreases in the prices of cars, petroleum products and electricity, while the prices of clothing, footwear, potatoes and certain fresh vegetables rose slightly, according to the Statistical Service CYSTAT.

Transport prices fell by 3.2% year on year. The government introduced a range of cuts in car excise duties in November.

The mild increase led to another fall in the annual rate of inflation, to 1.07% in November, down from 1.43% in October, 2.38% in September and more than 3% in May-August.

In the period January-November 2006 the CPI rose by 2.6% compared to the corresponding period of 2005.

The CPI is not the inflation rate which will be used for assessing whether Cyprus has met the Maastricht inflation criterion for adopting the euro.

However, a fall in this rate probably heralds a fall in the harmonised inflation rate (HICP)—the one that will be used when the time comes in mid-2007 for assessment.