NICOSIA -  The price of basic goods such as milk and bread have soared in the past four years, a survey by Phileleftheros newspaper published on Sunday shows. Accordingt to the survey, external factors, particularly rising international  fuel prices, have had a knock on effect on basic household products. For example costlier grain, fuel and animal feed has pushed up the price in milk, bread, pasta and meat. Weather conditions have also played a role as has the  introduction of 5% VAT on food more than a year ago.
The Phileleftheros survey shows the price of a milk in January 2008 when the euro replaced the Cyprus pound was  €0.95, and is now €1.28 while bread has climbed from €0.65 to €2.
The newspaper quoted economist Stelios Platis as sying that the increases were higher than the rise in inflation and could suggest a mstaken or non-competitive operation of the market.
"There are specific reasons for the general inflatinary pressures but there are more factors affecting local producion. For example the increase in VAT (food, medecine), costlier electricity goiven that Cyprus is dependent on petrol for its energy and the possibility that the domestic market does not operate competitively are some of the reasons that led to the increase," he said.
Platis added that the changeover in currency also brought inflationary tendencies..