Prices Down

Cheaper electricity and potatoes saw Cyprus' consumer inflation ease to 1.6 per cent year on year in December, the statistics department said yesterday.

On a monthly basis, the CPI for December dropped 0.06 per cent o 104.00 units from 104.06 in November. For the period January-December 2006 the index ran at 2.5 per cent compared to 2.6 per cent in 2005, a statement said.

Petrol prices, with an increase of 8.1 per cent had a significant impact on inflation in 2006, while increases were also recorded in food items of 4.8 per cent, and housing and electricity by 4.9 per cent. But he decrease in petrol prices in he last four months of 2006 ogether with the reduction of car prices since November 2006 had a favourable effect in keeping inflation at 2.5 per cent in 2006, the department said. Decreases were also recorded in the price indices of communication, clothing and footwear.