Cyprus records best new EU member rates in inflation
by Nicos Bellos
Brussels, Nov 17 (CNA) - The annual rate of inflation in Cyprus reached 2% in October 2004, compared to 1.8% in September. According to Eurostat figures, Cyprus recorded the best rates among the ten new member states.
In the whole of the EU, the average rate of inflation was 2.3% in October, compared to 2.1% in September. The lowest EU percentage was recorded in Finland with 0.6%, followed by Britain with 1.2%, Sweden with 1.4%, The Netherlands with 1.5% and Denmark with 1.6%. Latvia had the worst rate with 7.2%, followed by Hungary with 6.4% and Slovakia with 6.3%.
The main components with the highest annual rates in October 2004 were health (8.2%) and alcohol and tobacco (7.1%), while the lowest annual rates were observed for communication (-2.4%), food (-0.2%) and recreation and culture (-0.1%). Fuels for transport had the largest upward impact on the headline rate (+0.45 percentage points), followed by tobacco and heating oil (+0.22 each), while vegetables (-0.17), telecommunication (-0.14) and garments (-0.09) had the largest downward impacts.
The main components with the highest monthly rates were clothing (2.5%) and education (1.3%), while the lowest rates were recorded for recreation and culture (-0.6%), communication and hotels and restaurants (-0.2% each).
In particular, garments had the largest upward impact (+0.13 percentage points), followed by fuels for transport (+0.11), while package holidays (-0.05) and accommodation services (-0.04) had the largest downward impacts.