Cyprus Inflation Rises to Near 1-Year High

The annual inflation rate in Cyprus surged to 1.15% in March 2026, up from 0.06% in February. This marks the highest level since April 2025, as petroleum product prices rebounded, rising 2.26% from a 7.42% decline. Upward price pressures came mainly from food and non-alcoholic beverages (6.2% versus 2.4%), recreation and culture (2.9% versus 2.4%) and health (0.7% versus 0.5%), while prices grew at a slower pace for restaurants and hotels (3.3% versus 4.7%) and alcoholic beverages and tobacco (0.8% versus 1%). Meanwhile, deflation slowed for transport (-0.1% versus -3.7%) and clothing and footwear (-5.8% versus -6.8%). On a monthly basis, consumer prices grew 1.21%, rebounding from a 0.12% decline in the previous month.

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.