Cyprus’ inflation rate for May 2016 decreased at a rate of -2.1%, according to the Statistical Service of Cyprus.
The Consumer Price Index for May 2016 increased by 0.61 units to 98.66 units compared to 98.05 units in April 2016. When compared to May 2015, CPI is reduced by 2.1% while for the period between January and May 2016, CPI is decreased by 2.2% compared to the corresponding period of the previous year.
In the twelve-month period from June 2015 to May 2016, in comparison to the period from June 2014 to May 2015, the annual average rate of change of the CPI was -2.3%. The corresponding annual average rate of change of the CPI in the previous year was -1.2%.
As regards the economic origin, the largest change compared to the index of May 2015 was observed in Electricity, which was decreased by 20.4%. In relation to the index of the previous month, the biggest change was observed in Agricultural Goods with an increase of 5.1%.
Compared to May 2015, the categories with the biggest negative changes were the following: Housing, water, electricity, gas and other fuels (-6.9%) and Transport (-6.9%), whereas the category with the greatest increase was the Clothing and footwear (1.5%).
In comparison with the CPI of April 2016, the category with largest positive change was the Food and non-alcoholic beverages (2.4%) while decrease was observed in Communication (-1.1%).
For the period between January-May 2016, compared to the corresponding period of the previous year, the largest negative changes were noted in: Housing, water, electricity, gas and other fuels (7.8%), Transport (-5.5%) and Food and non-alcoholic beverages (-3.3%). On the other hand, the greatest positive change was recorded in Clothing and Footwear (2.0%).
Analysis of effects
The categories with the most remarkable negative effect on the change of the CPI when compared to May 2015 were the following: Transport (-1.07), Housing, water, electricity, gas and other fuels (-0.84) and Food and non-alcoholic beverages (-0.24), while the category with the biggest positive effect was the Clothing and footwear (0.14).
The category with the largest positive effect on the change of the CPI compared to the previous month, was the Food and non-alcoholic beverages (0.37), while the largest negative effect was observed in Communications (-0.05).
The following products/services had the most notable negative effect on the change of the CPI of May 2016 compared to the Index of May 2015: petroleum products (-0.69), electricity (-0.63) and air tickets (-0.53), while clothing (0.14) had the largest positive effect.
Finally, the products with the most positive effect on the change of the CPI of May 2016 compared to the index of the previous month were the fruits (0.25), petroleum products (0.11) and electricity (0.11), while mobile telephony (-0.04) had negative effect.