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Inflation Moderates in Cyprus Amid Sectoral Price Shifts

by THEFUTURE.TEAM

June 5, 2025

In May 2025, Cyprus experienced a moderated inflationary trend with a notable decrease of 0.2 percent, despite a modest rise in the Consumer Price Index (CPI). The CPI advanced slightly by 0.26 points to 117.57 units from 117.31 in April 2025, demonstrating that while prices continue to rise, the pace has eased relative to previous periods.

Sectoral Highlights And Annual Comparisons

Analyzing annual performance, the agricultural sector led with a 4.7 percent increase, closely followed by a 3.5 percent rise in services. However, significant declines were recorded in petroleum products and electricity, dropping by 12.8 percent and 8.6 percent, respectively, over the year. Monthly, petroleum products decreased by 3.3 percent, marking the most substantial shift from April 2025.

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Consumer Categories: Winners And Losers

A closer look at specific categories reveals that, compared to May 2024, restaurants and hotels experienced the steepest price ascent at 4.9 percent, with recreation and culture and education also showing upward trends at 4.0 percent and 3.7 percent, respectively. In sharp contrast, transport and clothing, and footwear witnessed declines of 6.6 percent and 5.3 percent, respectively. Furthermore, between April and May 2025, clothing and footwear prices increased by 2.4 percent, while transport prices fell by an equal margin.

Impact Analysis Over The First Five Months

From January to May 2025, year-on-year fluctuations highlighted a 5.6 percent drop in clothing and footwear and a 4.6 percent rise in restaurants and hotels. Education also saw a 3.7 percent increase, reinforcing the mixed effects across consumer sectors.

Index Point Contributions

Examining the contributions toward the annual CPI change, restaurants and hotels added 0.52 points, while food and non-alcoholic beverages contributed 0.46 points. In a counterbalancing trend, the transport sector exerted a significant negative pressure, subtracting 1.21 points from the index. Fresh fruit and catering services provided positive impulses, adding 0.25 and 0.53 points respectively, whereas petroleum products had the most pronounced adverse impact, decreasing the index by 1.47 points.

Monthly Adjustments And Final Observations

When comparing May 2025 to April 2025, transport again emerged as a critical factor, reducing the index by 0.41 points. Conversely, fresh fruit and clothing items added 0.22 points and 0.14 points, respectively. The monthly trend was further influenced by a 0.30 point reduction from petroleum products, underscoring the role of energy prices in the broader inflation landscape.

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Cyprus Emerges As A Leading Household Consumer In The European Union

by THEFUTURE.TEAM

June 30, 2025

Overview Of Eurostat Findings

A recent Eurostat survey, which adjusts real consumption per capita using purchasing power standards (PPS), has positioned Cyprus among the highest household consumers in the European Union. In 2024, Cyprus recorded a per capita expenditure of 21,879 PPS, a figure that underscores the country’s robust material well-being relative to other member states.

Comparative Consumption Analysis

Luxembourg claimed the top spot with an impressive 28,731 PPS per inhabitant. Trailing closely were Ireland (23,534 PPS), Belgium (23,437 PPS), Germany (23,333 PPS), Austria (23,094 PPS), the Netherlands (22,805 PPS), Denmark (22,078 PPS), and Italy (21,986 PPS), with Cyprus rounding out this elite group at 21,879 PPS. These figures not only highlight the high expenditure across these nations but also reflect differences in purchasing power and living standards across the region.

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Contrasting Trends In Household Spending

The survey also shed light on countries with lower household spending levels. Hungary and Bulgaria reported the smallest average expenditures, at 14,621 PPS and 15,025 PPS respectively. Meanwhile, Greece and Portugal recorded 18,752 PPS and 19,328 PPS, respectively. Noteworthy figures from France (20,462 PPS), Finland (20,158 PPS), Lithuania (19,261 PPS), Malta (19,622 PPS), Slovenia (18,269 PPS), Slovakia (17,233 PPS), Latvia (16,461 PPS), Estonia (16,209 PPS), and the Czech Republic (16,757 PPS) further illustrate the disparate economic landscapes within the EU. Spain’s figure, however, was an outlier at 10,899 PPS, suggesting the need for further data clarification.

Growth Trends And Economic Implications

Eurostat’s longitudinal analysis from 2019 to 2024 revealed that Croatia, Bulgaria, and Romania experienced the fastest annual increases in real consumer spending, each growing by at least 3.8%. In contrast, five member states, with the Czech Republic experiencing the largest drop at an average annual decline of 1.3%, indicate a varied economic recovery narrative across the continent.

This comprehensive survey not only provides valuable insights into current household consumption patterns but also offers a robust framework for policymakers and business leaders to understand economic shifts across the EU. Such data is integral for strategic decision-making in markets that are increasingly defined by evolving consumer behavior and regional economic resilience.