Cyprus registered the lowest annual inflation rate in the entire European Union in July, with consumer prices holding nearly flat at just 0.1%. This figure stands in stark contrast to the broader inflation seen across the Eurozone, according to data published Wednesday by Eurostat and the Cyprus Statistical Service (CyStat).
While Cyprus experienced near-zero inflation, the annual rate for the Euro area was 2.0%, and for the EU as a whole, it was 2.4%. At the other end of the spectrum, countries like Romania (6.6%) and Estonia (5.6%) were grappling with significantly higher price increases.
What’s Driving the Numbers in Cyprus?
The remarkably low inflation was primarily driven by a significant 9.7% year-on-year drop in the energy category. This, along with falling prices for Clothing and Footwear (-7.1%) and Housing, Water, and Gas (-4.4%), effectively cancelled out price hikes in other sectors.
Despite the overall stability, consumers in Cyprus did face rising costs in Restaurants and Hotels (+5.9%) and for Recreation and Culture (+4.2%), reflecting strong activity in the island’s tourism and leisure industries.
A Monthly Snapshot
When compared to the previous month of June 2025, consumer prices in Cyprus actually saw a slight increase of 0.4%. This was largely due to rising costs in transport (+3.8%). However, this increase was tempered by a sharp 13.4% drop in clothing and footwear prices, a trend often associated with the start of summer sales.
Across the Euro area, the main contributor to inflation was the services sector, while declining energy prices had a cooling effect on the overall rate.
Source: stockwatch.com.cy