Cyprus: inflation deflating?

New figures reveal that Inflation my have reached its peak in Cyprus…

The harmonised inflation rate (HICP) of eurozone member Cyprus fell to 4.4% in March from 4.7% in February according to the latest figures from the Statistical Service Cystat.

Although the year-on-year rate was still high by recent standards, there were some signs from monthly inflation figures that the peak of inflation has been reached. Compared with the previous month, prices rose by 1.1%, lower than in March 2007 when the monthly rise was 1.3% and in March 2006 when the rate was 1.2%.

A spokesperson for CyStat commented: “As with the national consumer price index released last week, the impact of high international oil and food prices and can be seen in the strong inflation figures for food, transport and (oil-fired) electricity prices. Food and non-alcoholic beverages rose by 5.0% year on year in March; transport by 8.6% and housing, water, electricity and gas prices rose by 11.1%”.

For the first three months of the year the HICP rate was 4.4% while the CPI was 4.7%