Continuous decrease in the Consumer Price Average during July 2007 and the Annual Inflation Rate continues retreating

The data issued by the Department of Statistics indicate continuous decrease in the Consumer Price Average during July 2007 by 0.14% compared with the previous month (June 2007) following the relative stability of prices witnessed since the end of 2006.

The Consumer Price Index (which represents the weighted average for all commodities and services in the consumer basket) reached 119.89 during July 2007 (as compared to 120.05 during June 2007). Therefore, the accumulative increase in the Price Index since the beginning of 2007 reached 0.14% (by comparing the Consumer Price Index in July 2007 with December 2006).

Meanwhile, it is noticed that the Annual Inflation Average, which measures the percentage of the price increase between 2007 and 2006, has taken a declining trend.  The increase of prices has fallen to 5.87% during the first seven months of this year as compared with the same period of 2006, while the increase in the first six months of this year was 6.23 % as compared with the same period of 2006. The decrease (expected to persist over the next months if the same conditions prevail) is attributed to the fact that the impact of the fuel price hike that took place during the second quarter of 2006 has been reflected in the comparison years 2006 and 2007 as of the second quarter of 2007.

The following figure shows the trend of the Consumer Price Index during 2005 and 2006 and the first seven months of 2007.

Price Index        

Month