Cyprus was the only country in the European Union to record zero annual inflation in August 2025, a period when prices across the rest of the bloc continued to rise. According to official data from Eurostat, the country’s 0.0% inflation rate made it a significant outlier.
The European Inflation Landscape
The stable prices in Cyprus stand in sharp contrast to the Eurozone’s average inflation rate of 2.0% and the wider EU average of 2.4% for the same month.
The data reveals a wide divergence in price pressures across the continent. While France (0.8%) and Italy (1.6%) also recorded low inflation, other member states saw significant increases. The highest annual inflation rates were registered in Romania (8.5%), Estonia (6.2%), and Croatia (4.6%).
What’s Driving Prices in the EU
Eurostat’s analysis shows that the biggest upward pressure on prices at the EU level came from the services sector, which contributed 1.44 percentage points to the headline inflation rate.
This was followed by rising costs for food, alcohol, and tobacco (+0.62 percentage points). In contrast, energy prices continued to have a deflationary effect across the bloc, contributing negatively to the overall rate (-0.19 percentage points).
Source: Stockwatch.com.cy