Inflation slows in June, down to 0.7%

?inflation slowed to a 0.7% annual rate in June, the Statistical Service of Cyprus reported Thursday in a release of the Consumer Price Index. This is the lowest increase in the last five months, since inflation stood at 1.05% last May, 2% in April, 1.91% in March, and 1.68% in February this year.

In June 2017, the Consumer Price Index decreased by 0.51 units to 99.19 units compared to 99.70 units in May 2017. Compared to June 2016, CPI is increased by 0.7% while for the period between January and June 2017, CPI is also increased by 1.3% compared to the corresponding period of the previous year.

In the twelve-month period from July 2016 to June 2017, in comparison to the period from July 2015 to June 2016, the annual average rate of change of the CPI was 0.3%. The corresponding annual average rate of change of the CPI in the previous twelve month period was -2.3%.

Analysis of changes

Compared to June 2016, the category with the biggest change was the Housing, Water, Electricity, Gas and Other Fuels (8.3%).

In comparison to the CPI of May 2017, the category with the largest decrease was the Food and Non-Alcoholic Beverages (-2.7%).

For the period between January�June 2017, compared to the corresponding period of the previous year, the largest positive change was noted in Housing, Water, Electricity, Gas and Other Fuels (7.5%).

Analysis of effects

The category with the largest positive effect on the change of the CPI of June 2017 when compared to June 2016 was the Housing, Water, Electricity, Gas and Other Fuels (0.95). The Food and Non-Alcoholic Beverages (-0.12) had negative effect.

The categories with the largest negative effect on the change of the CPI compared to the previous month, were the Food and Non-Alcoholic Beverages (-0.43) and Transport (-0.08).

The following products/services had the most notable positive effect on the change of the CPI of June 2017 compared to June 2016: electricity (0,76) and petroleum products (0.14). The product with the most negative effect was Air tickets (-0.14).

Finally, fresh fruits (-0.26) and petroleum products (-0.11) had the most negative effect on the change of the CPI of June 2017 compared to the previous month.

Source: Cyprus News Agency