New data released on Friday by Eurostat, the European Union’s statistical office, reveals a striking contrast in inflation rates across the bloc. While the European Union’s annual inflation rate rose to 2.6% in September 2025, an increase from 2.4% in August, the island nation of Cyprus uniquely recorded an annual inflation of 0%.
The broader euro area also saw an upward trend, with its annual inflation rate hitting 2.2%, up from 2.0% in August 2025 and notably higher than the 1.7% recorded in September 2024. The overall EU figure of 2.6% marks a rise from 2.4% in the preceding month and 2.1% a year earlier.
Highest and Lowest Inflation Rates Across the EU
The range of inflation across member states was substantial. At the high end, Romania registered the sharpest annual rate at 8.6%. It was followed by Estonia at 5.3%, with both Croatia and Slovakia tied at 4.6%.
On the other side of the spectrum, the lowest rates were noted in France at 1.1%, and both Italy and Greece at 1.8%. However, Cyprus was the standout, maintaining its 0% rate.
Cyprus’s Stable Price Environment
The stable rate in Cyprus is a remarkable development. The 0% annual inflation in September 2025 remained unchanged from August 2025, even registering a slight month-on-month deflationary trend of -0.4%. This performance is especially significant considering that just one year prior, in September 2024, Cyprus’s inflation stood at 1.6%, and other nations like Romania and Estonia were already experiencing significant price increases.
Drivers of Inflation in the Euro Area
Analysis by Eurostat indicates that the primary pressure points for inflation in the euro area stemmed from services, which provided the largest boost at 1.49%. This was followed by food, alcohol, and tobacco at a 0.58% contribution, and non-energy industrial goods adding 0.20%. In contrast, energy prices had a slightly deflationary impact, contributing -0.03% and slightly mitigating the overall rise in the inflation figure.
Source: Stockwatch.com.cy