Our View: Inflation cannot be tackled with changes to tax policy

Cyprus has a higher inflation rate than the euro area average. According to the latest figures, released by Eurostat, the inflation rate in Cyprus in June hit 4 per cent, up from 3.5 per cent the previous month, moving in the opposite direction, compared to the euro area, where it had fallen from 3.2 per cent in May to 2.8 per cent this month.

Why the inflation rate in Cyprus was moving in a different direction was unclear. Prices rose in the euro area countries because of the rise in the...