Deflation continues

Cyprus rate of inflation declined to -0.3% year on year in December 2016 remaining in negative territory for 42 consecutive months, data released on Wednesday by the Cyprus Statistical Service (Cystat) show.

For the period between January and December 2016, inflation is also decreased by 1.4% compared to the corresponding period of the previous year, CyStat added.

Negative inflation was most affected by the reduction in energy prices that dropped by 4.1% compared with December 2015.

Compared with November 2016, the Consumer Price Index for December 2016, increased by 0.45 units to 99.61 units from 99.16, mainly due to agricultural goods prices that recorded an increase of 5.7%.