The consumer price inflation rate in Cyprus breached 5% for the first time in more than five years in June, as consumer prices rose by 5.5% over June 2007. The last time inflation breached 5% was in May 2003, when it reached 5.1%.

Compared with the previous month, prices rose in June by only 0.3%, compared with 0.8% in May and 1.0% in April.

However, the smaller rise was probably for seasonal reasons and the 0.3% increase compares badly with a 0.2% monthly fall in June 2007.

The Statistical Service reported that the rise in June was mainly owing to increases in the prices of petroleum products, electricity, bread and takeaway meals.

Decreases were recorded in the prices of certain fresh fruit and vegetables.

For the period January-June 2008, the CPI recorded an increase of 4.83% compared to the corresponding period of 2007.

Financial Mirror , 01/07/2008