Harmonised inflation seen at 0.5% in August 2017

The harmonised consumer price index rose in August 2017 an annual 0.5% mainly as the island’s hospitality industry passes energy price increases to consumers as it operates on full capacity, the statistical service said.

From January to August, the harmonised annual inflation rate was 1%, Cystat said in a statement on its website on Tuesday. Compared with the month before, consumer prices rose 1% in August.

Energy prices rose last month 6% compared with August 2016 and services rose 2.1%, Cystat said. This was offset by a 2.9% drop in food, alcoholic beverages and tobacco prices and a 1.1% reduction of industrial product prices excluding fuel.

In August, hotels and restaurants increased their prices on average 3.1% compared with the respective month of 2016, even as prices in the sub-categories of food and non-alcoholic beverages, alcoholic beverages and tobacco and equipment and cleaning and furnishings, household equipment and routine fell 2.8%, 3.3% and 2.4% respectively. Prices in the subcategories of transport and housing, water, electricity, gas and other fuels rose 4.5% and 4.7%.

Source: Cyprus Mail