Cyprus experienced deflation for the second straight month in June 2025, according to figures published by the Statistical Service on Thursday. The Consumer Price Index (CPI) decreased by 0.4% on an annual basis, continuing the downward trend seen in May.
The CPI fell to 117.28 units in June, down by 0.29 points from 117.57 units in the previous month. The latest data reflects both monthly and annual shifts in the cost of goods and services across various economic categories.
Annual and Monthly Trends
Compared to June 2024, the most significant price drop was recorded in electricity, which declined by 10.3%. Petroleum products also saw a notable decrease of 9.2%. In contrast, services registered the largest increase, rising by 3.9% year-on-year.
On a monthly basis, agricultural products saw the steepest drop, with prices falling by 4.8% from May to June. The category of food and non-alcoholic beverages also declined by 2.3%, contributing to the overall monthly decrease in inflation.
Sector Breakdown
The categories that posted the largest annual changes in June were:
-
Restaurants and hotels: +5.5%
-
Recreation and culture: +5.1%
-
Clothing and footwear: -5.2%
When comparing June 2025 to May 2025, the most notable monthly changes were:
-
Food and non-alcoholic beverages: -2.3%
-
Restaurants and hotels: +1.1%
From January to June 2025, prices in the clothing and footwear category fell by 5.6% compared to the same period in 2024, while restaurants and hotels increased by 4.7%, and education rose by 3.7%.
Impact on Inflation Index
The biggest positive impact on the annual CPI change came from restaurants and hotels (+0.59 points) and recreation and culture (+0.33 points). The most significant negative impact was from the transport sector, which subtracted 0.77 points from the overall index due to falling fuel prices.
Month-on-month, catering services had the largest positive influence on the index (+0.11), while fresh vegetables had the largest negative impact (-0.32). Petroleum products also contributed significantly to the decline, with a negative effect of -1.01 points compared to the same month last year.
Source: Stockwatch.com.cy
