Cyprus continued to experience deflation in July 2025, marking the third month in a row with negative inflation. The Consumer Price Index (CPI) dropped by 0.9% compared to July 2024—the sharpest year-on-year decrease recorded since late 2022.
The Statistical Service of Cyprus reported that the CPI fell to 116.65 units in July, down from 117.28 units in June, reflecting a monthly decline of 0.63 units.
Among the different economic categories, the Services sector showed the highest annual increase at 3.7%. However, steep declines were recorded in Electricity (down 12.2%) and Petroleum Products (down 8.1%) when compared year-on-year. On a monthly basis, Industrial Goods excluding petroleum products saw the largest decrease, dropping by 2.0%.
When comparing July 2025 to the same month in 2024, the most notable percentage shifts were:
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Clothing and Footwear: -7.3%
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Restaurants and Hotels: +5.0%
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Recreation and Culture: +4.1%
Month-over-month, July’s key movers included:
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Clothing and Footwear: -12.4%
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Transport: +2.1%
Over the seven-month period from January to July 2025, notable annual changes included:
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Clothing and Footwear: -5.8%
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Restaurants and Hotels: +4.8%
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Education: +3.8%
Looking at contributions to the overall CPI:
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The strongest positive annual effects came from Restaurants and Hotels (+0.54 points) and Recreation and Culture (+0.27 points).
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Food and Non-Alcoholic Beverages had the most pronounced negative annual contribution, lowering the index by 0.72 points.
In terms of monthly impact:
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Clothing and Footwear exerted the greatest downward pressure on the index in July, reducing it by 0.92 points compared to June.
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The largest positive monthly contribution came from Petroleum Products (+0.16 points), while Clothing Items had the biggest negative effect (-0.71 points).
Source: Stockwatch.com.cy