Cyprus officially registered a negative inflation rate of 0.3% in October 2025 on an annual basis (compared to October 2024), according to data released by the Statistical Service on Thursday. While the Consumer Price Index (CPI) itself saw a marginal monthly rise of 0.54 points (reaching 118.25 units from 117.71 in September 2025), the year-on-year drop signals a mild deflationary environment.
Sectoral Performance: Annual Change
The annual change in the CPI was characterized by diverging price trends across different economic categories:
Major Downward Pressure (Deflationary Impact)
The negative inflation was primarily driven by sharp drops in the cost of energy and certain goods:
- Electricity: Registered the largest negative change across all economic categories at -7.5%.
- Clothing and Footwear: Recorded the largest decline among consumer goods categories at -6.7%.
- Food and Non-Alcoholic Beverages: Prices in this essential category fell by -2.1%.
- Agricultural Products: Saw a decrease of -2.6%.
Major Upward Pressure (Inflationary Impact)
Price growth continued in the services sector, which showed the largest positive change overall:
- Services: Rose by 3.0% across the economic categories.
- Restaurants and Hotels: Experienced the biggest increase among consumer groups at 4.4%.
- Education: Prices climbed by 3.5%.
Impact Analysis: What Drove the CPI Change
The Statistical Service analyzed the specific component effects that contributed to the -0.3% annual inflation figure:
| Component | Annual Impact (in CPI Units) | Direction |
| Catering Services (Restaurants/Hotels) | +0.50 | Largest Positive Impact |
| Education | +0.16 | Positive Impact |
| Food and Non-Alcoholic Beverages | -0.52 | Largest Negative Impact |
| Clothing and Footwear | -0.51 | Largest Negative Impact |
| Electricity | -0.43 | Significant Negative Impact |
Year-to-Date Trends (January – October 2025)
Looking at the cumulative changes compared to the same period in the previous year, certain trends remain clear:
- Largest Price Increases: Restaurants and Hotels (+4.7%), Education (+3.7%), and Recreation and Culture (+3.3%).
- Largest Price Decrease: Clothing and Footwear (-6.2%).
On a monthly basis (compared to September 2025), the largest price change was an increase in Clothing and Footwear (3.6%), reflecting seasonal factors as winter stock is introduced.
Source: Stockwatch.com.cy