Cyprus CPI inflation climbs to 2.2% in May

Food prices soar

 

Consumer price inflation in Cyprus rose to 2.2% compared with the same month of the previous year in May 2007, after an inflation rate of 1.8% in April and a low of 1.1% in November 2006.

This is the first time since September 2006 that the CPI has breached 2%.

The main reason for the increase was a strong rise in the heavily weighted category of food and non-alcoholic beverages, where prices rose year on year by 7.3%, up from 6.6% in April.

The Statistical Service Cystat reported that inflation compared with the previous month was mainly owing to “increases in the prices of certain fresh fruit, petroleum products, certain clothing items and water rates.”

Cystat also reported decreases in the prices of certain fresh vegetables and potatoes.

Accelerating inflation is less of a concern now than it would have been two months ago: Cyprus was told by the European Commission in May that it had passed the inflation test for adoption of the euro, due in January 2008.

 

Fiona Mullen