ECONOMY

In Brief

Cyprus inflation jumps to 1.4 percent in November NICOSIA (Reuters) – Cyprus consumer prices rose 1.4 percent year on year in November after falling 0.8 percent in October, the island’s statistics department said yesterday. For the period January to November, the consumer price index (CPI) recorded an increase of 0.2 percent compared with the same period in 2008. On a monthly basis, the consumer price index rose by 1.16 percent in November to 112.95 compared with 111.65 in October. Monthly increases were recorded in the prices of fresh fruit and vegetables, clothing and fuel. Statistics recorded a drop in the price of heating fuel and hotel costs. Year-on-year, healthcare and education recorded price increases exceeding 5 percent, while household utility bills and clothing were down by almost 2 percent. Turkish prices increase more than expected ANKARA (Reuters) – Turkey’s inflation rose a higher than expected 1.27 percent month-on-month in November, the Turkish Statistics Institute said yesterday, diminishing expectations of a central bank interest rate cut in December. A poll of 12 economists gave a forecast rise of 0.97 percent in consumer inflation. The producer price index rose 1.29 percent month-on-month in November, compared with a forecast rise of 0.67 percent, for an annual rise of 1.51 percent. Consumer prices rose 5.53 percent on the year, slightly higher than a 40-year low last month of 5.08 percent. Analysts said the data left few expecting another interest rate cut by the central bank when its monetary policy committee meets in December. Croatia shipyards Croatia will launch a fresh bid to sell its ailing shipyards in January in its latest attempt to meet a key requirement for European Union membership. The first privatization round fell through in September, when the former Yugoslav republic rejected bids for two of the six state-owned yards on sale. Shipbuilding, once a flagship export industry, employs 15,000 people but is piling up debt and survives only thanks to hefty state subsidies, considered a violation of EU rules. Selling it off is one of the most politically sensitive issues for the government because it could entail job cuts. Only one of the six shipbuilding yards, Uljanik in the northern Adriatic town of Pula, is profitable. (Reuters) Romanian bonds The Romanian central bank said yesterday it had raised 292 million euros through a bond issue that beat expectations by 30 percent. The funds, raised after the International Monetary Fund delayed a loan installment, will be used to help ease the country’s public deficit, the bank said. Interest on the bond is 10 percent, compared with 9.98 percent for the last issue. The Ministry of Finance hopes to raise 1.14 billion euros in bond issues this month. Faced with an expected 8 percent contraction in the economy this year, Romania is facing mounting difficulties in funding its retirement scheme and paying public sector workers. Problems intensified after creditors decided to delay payment of a 2.5-billion-euro installment of a 20-billion-euro loan because of political instability in the country. (AFP)