Deflation stood at 2% in June 2016

Deflation stood at 2% in June 2016

Deflationary pressures were maintained in June 2016 for the 19th consecutive month, with Harmonized Consumer Price Index (HICP) decreasing at a rate of -2.0%, compared with the same month of 2015 when it was reduced by -2.1%.

According to data released on Tuesday by Cyprus’ Statistical Service, in May 2016 the inflation had fallen to -1.9%.

Moreover, in the first half of this year, the harmonized inflation rate fell 1.9%, compared with the same period in 2015.

The highest deflation was recorded in June 2016 in categories related to the reduction of fuel prices. In transport the Harmonized Consumer Price Index fell by 11%, while in the category housing, water, electricity and gas it was decreased by 8.8%. The largest price increase was recorded in the category alcoholic beverages and tobacco by 1.7%.