NICOSIA -- Prices showed a record drop for the first time since 1964, while December witnessed the largest price plunge of recent years, reinforcing the deflationary trends of recent months.
According to statistical service data released on Friday, inflation reached -2.30% in December, -2.10% in November from 1.10% in December 2012.
The acceleration of the reduction in prices is attributed primarily to the drop in prices of food and non-alcoholic beverages, as well as housing, water, electricity and gas.
The prices in the sector of housing, water, electricity and gas recorded a significant fall of 9.05% in comparison to the 8.44% drop last month.
Prices of food and non alcoholic beverages fell by 0.83% in comparison to 2.12% drop last month, while clothes and shoes’ prices also fell by 4.55% compared to a 3.80% dip in November.
On the other hand, prices of alcoholic beverages and tobacco increased by 4.15% in comparison to an 8.02% rise in November.
Other significant price drops were noted in the education and health sectors by 4.21% and 3.56% respectively, while furniture, household equipment and cleaning product prices fell by 3.43%.
In December, transportation prices rose by 1.14% compared to 1.45% in November.
The statistical services stressed that this is the first year since 1964 where the annual rate of inflation has been negative at -0.4%.