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Cyprus sees sharp acceleration of inflation

The lifting of a subsidy on fuel prices, as mandated by the European Union and implemented by the Cypriot government, has led to a sharp acceleration of inflation between April and May, the Cypriot Statistical Service (Cystat) said on Thursday.

The termination of the 0.083 euro per liter fuel subsidy was demanded by the European Commission, which said that the existing subsidies violated EU rules.

The Cystat attributed the year-on-year inflation rise of 2.7 percent in May, the highest over the past six months, to the increase in oil prices, which surged 10 percent compared with last May. ■

Famagusta Gazette