A deflationary price trend continued in May, when the Consumer Price Index fell by 2.2 percent compared to the same period last year, said the Cyprus Statistical Service (CySTAT).

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%, according to CySTAT.

Too much price deflation is bad for the economy because it reducing the income made by companies, therefore reducing the amount of money they have to make new investments and hire more personnel. On the other hand, it is good for consumers, who have more affordable goods and services from which to choose.