Cyprus recorded a slight uptick in annual inflation in October 2025, reaching 0.2% compared to the same month the previous year. This minimal increase, measured by the Harmonised Index of Consumer Prices (HICP), signals stable consumer prices overall. The index also saw a marginal 0.1% rise compared to September 2025, according to the Statistical Service of Cyprus.
Annual Price Drivers (October 2024 to October 2025)
The moderate annual inflation rate was a result of sharp price increases in services being largely offset by significant price reductions in energy and specific goods.
Categories with the Largest Increases
The highest inflationary pressure came from consumer services:
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Recreation and Culture: Prices rose by 5.2%.
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Restaurants and Hotels: Experienced an increase of 5.2%.
Categories with the Largest Decreases
Deflationary pressure was led by price drops in essential components:
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Clothing and Footwear: Recorded the largest decline at -6.6%.
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Housing, Water Supply, Electricity and Gas: Fell by -2.2%.
Among the broader economic categories, Energy saw the largest downward movement with a -4.1% decrease compared to October 2024.
Monthly and Year-to-Date Changes
Month-over-Month Trends (September to October 2025)
The most significant shifts between September and October 2025 were due to seasonal factors and market adjustments:
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Clothing and Footwear: Rose by 3.7%, likely due to the introduction of new seasonal stock.
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Restaurants and Hotels: Decreased by -1.7%, typical for the post-summer period.
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The broader Non-Energy Industrial Goods category showed the largest change, rising by 1.1%.
Cumulative Performance (January–October 2025)
For the first ten months of the year, compared to the corresponding period in 2024, the most significant changes were concentrated in three areas:
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Recreation and Culture: +6.4%
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Restaurants and Hotels: +5.3%
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Clothing and Footwear: -6.1% (Largest cumulative decrease)
Source: Stockwatch.com.cy