Cyprus construction materials prices rose only slowly
Inflation of construction materials prices was moderate in March, as the price index of construction materials rose by only 0.6% over the previous month to reach 117.23 (base year 2005=100.00).
For the period January - March 2009, the index recorded an increase of 0.66% over the corresponding period of the previous year.
As of March 23, 2009, the price index of construction materials has adopted a revised classification of materials, a new sample of enterprises and a new base year. The main changes are as follows.
* The classification of materials observed by the index has been updated to reflect the use of modern materials. Materials of minor use have been removed. The weight of each material in the overall index comes from the sum of its imports and local production.
* The new classification required a new sample of enterprises. These were selected in a way that ensures representative prices.
* An important change is also the change of base year. Instead of year 2000, the average price of 2005 will now be the price to which all monthly prices are compared to form an index. The general index has been re-calculated according to the new base year from January 2005 to December 2008.
The apparent changes between the monthly indices of the 2000 based and the 2005 based price index of construction materials are due to the changes in the classification, the sample, the weights and, of course, the base year.
April 23, 2009 - www.financialmirror.com