Inflation seen at -0.7% in January, Cystat says

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By Stelios Orphanides

The consumer price index fell in January 0.7 per cent compared to the respective month of 2017, mainly on cheaper agricultural produce, the statistical service said.

Prices for produce dropped last month 14 per cent while that for other industrial products excluding energy and electricity fell 0.9 per cent and 0.2 per cent respectively compared to January 2017, Cystat said in a statement on its website on Tuesday. Fuel prices rose almost 1 per cent while those for services rose 1.3 per cent.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • European Citizen

    While negative inflation is generally great for consumers, it is a worrying sign for the economy. It is implied that the producers can’t charge higher fees, therefore, they cannot grow their businesses. That indicates an economic slow down. Potentially very worrying news for Cyprus.

  • Bruce

    The deflation in Cyprus is an indication that domestic demand for local products is weak.This has resulted from employers keeping wages down and from the lower propensity to consume of the few persons benefitting disproportionately from rapid GDP growth.The Government needs to collect much more revenue by combatting tax evasion and spend more locally on programmes to boost the e-economy and green economy as well as improving health and education services, in the process boosting domestic demand. Austerity to just produce primary surpluses just to repay the EU should be abandoned.