TRIPOLI - The inflation rate in Libya plunged to one percent in June from 12.4 percent a year earlier amid the global credit crunch, the Central Bank of Libya announced on Thursday.
Libya imports around 90 percent of its food and other supplies, notably from Europe, where consumer prices have fallen sharply this year.
In the six months to June, the rise in Libyan prices slowed to 4.15 percent from 11.5 percent in the year-earlier period, the CBL said.
Inflation soared in Libya in 2008, peaking at 12.9 percent in July last year amid sharp increases in housing costs and food prices.
Libya had a negative inflation rate at the end of the 1990s but demand for consumer goods grew rapidly following the lifting of the UN embargo, in place from 1992 to 2003.