Cyprus Inflation Rate Rises at Softer Pace

The annual inflation rate in Cyprus eased to 0.06% in February 2026 from 0.5% in the previous month. Prices moderated for food and non-alcoholic beverages (2.36% vs 3.01% in January), while deflation worsened for both housing and utilities (-1.41% vs -0.65%) and transport (-3.71% vs -2.45%). Overall inflation was also driven by easing prices of furnishings and home decoration, household equipment, and routine home maintenance (0.24% vs 0.39%), health (0.51% vs 0.79%), recreation, sports and culture (2.43% vs 3.16%), and restaurants and accommodation services (4.74% vs 4.78%). In contrast, deflation eased for clothing and footwear (-6.77% vs -7.01%), while price growth increased at a faster pace for personal care, social protection, and miscellaneous goods and services (2.03% vs 1.78%). On a monthly basis, consumer prices fell 0.12%, slowing from a 0.3% drop in January.

Consumer prices in Cyprus rose by 0.5% year-on-year in January 2026, marking a rebound after eight consecutive months of deflation and following a 0.5% decline in December 2025. The increase was mainly driven by higher prices for food (up 3.01% vs. -2.93%), furnishings (0.4% vs. -0.23%), recreation and culture (3.17% vs. 2.20%), and education (3.71% vs. 3.45%). Meanwhile, inflation eased for restaurants and hotels (4.79% vs. 4.92%), health (0.79% vs. 1.12%), and non-alcoholic beverages and tobacco (0.75% vs. 1.04%). In contrast, price growth turned negative for communication (-1.97% vs. 0.54%), while deflation persisted in transports (-2.45% vs. -0.85%) and eased for housing and utilities (-0.65% vs. -1.65%) as well as clothing and footwear (-7.02% vs. -7.93%). On a monthly basis, consumer prices fell by 0.3%, following a 0.13% increase in the previous month.

Consumer prices in Cyprus fell by 0.5% year-on-year in December 2025, unchanged from the previous month. It marked the eighth consecutive month of consumer deflation, as prices decreased at a faster pace for transport (-0.85% vs -0.68% in November), housing and utilities (-1.65% vs -1.17%), and clothing and footwear (-7.93% vs 7.61%). Moreover, cost moderated for health (1.12% vs 1.19%), communication (0.54% vs 0.59%), and restaurants and hotels (4.92% vs 4.98%). In contrast, deflation softened for food and non-alcoholic beverages (-2.93% vs -3.09%) and furnishings, household equipment, and routine maintenance of the house (-0.23% vs -0.84%). Prices accelerated for alcoholic beverages and tobacco (1.04% vs 0.52%), education (3.45% vs 3.30%), and miscellaneous goods and services (1.41% vs 1.03%). On a monthly basis, consumer prices rose 0.1%, rebounding from a 0.6% fall in November.