CYPRUS: July inflation -0.2% y-o-y, -1.9% Jan-July

In the twelve-month period from August 2015 to July 2016, in comparison to the period from August 2014 to July 2015, the annual average rate of change of the CPI was -2.0%. The corresponding annual average rate of change of the CPI in the previous year was -1.5%.

The largest change in the index from July 2015 to June 2016, was in agricultural goods. Particularly, when compared to July 2015, an increase of 26.2% was recorded and in relation to the index of the previous month, an increase of 15.0% was observed.

Analysis of changes

Compared to July 2015, the categories with the biggest negative changes were transport (-6.6%) and housing, water, electricity, gas and other fuels (-6.3%), whereas the category with the greatest increase was the food and non-alcoholic beverages (10.1%).

In comparison to the CPI of June 2016, the category with the largest increase was the food and non-alcoholic beverages (6.9%), while the biggest negative change was in clothing and footwear (-13.6%).

For the January-July period, compared to the corresponding period of the previous year, the largest negative changes were in: housing, water, electricity, gas and other fuels (-7.4%) and transport (-6.0%). On the other hand, the greatest positive change was in clothing and footwear (1.7%).

Analysis of effects

The categories with the largest negative effect on the change of the CPI of July 2016 when compared to July 2015 were: transport (-1.04) and housing, water, electricity, gas and other fuels (-0.78). The category with the greatest positive effect was the food and non-alcoholic beverages (1.55).

The category with the largest positive effect on the change of the CPI compared to the previous month, was the food and non-alcoholic beverages (1.09), while the largest negative effect was observed in clothing and footwear (-1.21).

The following products/services had the most notable negative effect on the change of the CPI of July 2016 compared to the Index of July 2015: petroleum products (-0.66), electricity (-0.63) and airline tickets (-0.49), while vegetables (0.78) and fruits (0.75) had the largest positive effect.

Finally, the products with the most positive effect on the change of the CPI of July 2016 compared to the index of the previous month were fruits (0.46) and vegetables (0.44), while clothing (-0.91) and footwear (-0.30) had a negative effect.

Source: Financial Mirror.