-Compared to 3.41% in September
-The Minister of Finance answers back…

Having on its disposal new evidence over inflation for October (brought out by the Statistics Service), the Ministry of Finance answers back to all those who questioned its estimates.

Specifically, the rate of inflation for October slowed down to 2.52% against 3.41% in September, while structural inflation for October did not exceed 2%. According to the Statistics Service, the total growth rate of inflation for the ten first months of 2002 reached 2.78%, while for October – compared to October 2001 - it reached 2.52%.


The Ministry of Finance seems to be particularly satisfied with the developments, as these data are a direct reply to AKEL and the other opposition parties over the development of Cyprus economy. “Unlike the estimates of other organizations, the Ministry of Finance - based on the real size of Cyprus economy – reassures that the growth rate of inflation is not expected to exceed 3% for 2002”.

According to Ministry’s announcement “this estimate is substantiated by the fundamental characteristics of the Cyprus economy, taking into account all factors affecting inflation (restricted bank loans, restricted fiscal deficit, salary increases in the context of productivity, stability of the Cyprus pound, low imported inflation), while “reduced phone call rates introduced by CYTA had also had a positive effect in the rate of inflation for October”.