The rate of inflation reached 5% during the period of the 1989-93 Development Plan, surpassing the Plan provision which was set at 4,3%. Factors which contributed to the increase of inflation to levels higher than anticipated were, on the demand side, the high fiscal deficits and the great overshooting of the target regarding the money supply, and on the supply side, the adverse weather conditions which affected the production of the domestically produced agricultural goods, as well as the labour shortages which led to high increases of unit labour costs.

Source: www.kypros.org