Cyprus CPI Rises in August 2025 Despite Annual Inflation Decline

by THEFUTURE.TEAM

September 4, 2025

The recent state statistical service report indicates a notable increase in Cyprus’ Consumer Price Index (CPI) for August 2025, which recorded a rise to 117.04 units from 116.65 units in July 2025. This monthly increase of 0.39 points comes as inflation over the same period year-on-year has registered a decline of 0.9 percent.

Sector-Specific Trends And Their Implications

Examining key economic categories, services experienced the highest year-on-year surge, registering a 3.6 percent increase. This uptick contrasts with significant price declines in energy sectors, where electricity prices dropped by 11.6 percent and petroleum products fell by 7.3 percent. Notably, agricultural products saw the most substantial month-on-month change, spiking by 4.4 percent compared with July 2025.

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Contrasting Variations: Yearly And Monthly Indicators

The analysis reveals diverse trends across various sectors when comparing the period to both the previous year and the preceding month. Year-over-year, clothing and footwear prices decreased by 7.7 percent, whereas restaurants and hotels and the recreation and culture categories grew by 4.5 percent and 3.9 percent respectively. In month-on-month terms, food and non-alcoholic beverages rose by 1.8 percent and clothing and footwear fell by 1.1 percent, reflecting subtle but important shifts in consumer behavior and pricing dynamics.

Impact Analysis: Contributions To The CPI Change

A closer look at the unit contributions in August 2025 reveals that restaurants and hotels added 0.49 units to the CPI, followed by recreation and culture with an increase of 0.26 units. Conversely, food and non-alcoholic beverages subtracted 0.72 units while transport detracted 0.55 units over the same period. Particularly, catering services featured as the largest positive contributor with an increase of 0.53 units, offset by petroleum products, which negatively affected the index by 0.84 units.

Understanding The Price Dynamics

The apparent paradox of rising monthly prices accompanied by a decrease in annual inflation is clarified by the differing metrics: the CPI provides an absolute level of prices for each month, whereas year-on-year inflation measures the rate of change relative to the same period in the previous year. Despite modest month-to-month increases, the overall pace of price hikes has moderated compared with August 2024, underscoring the nuanced trajectory of Cyprus’ economic environment.

This comprehensive analysis underlines that while higher costs in food, services, and recreation have driven up the CPI in August 2025, the tempered annual inflation rate signals a broader stabilization in pricing trends, offering crucial insights for policymakers and business leaders alike.

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Cyprus President Champions Domestic Defence Industry For National Security And Economic Growth

by THEFUTURE.TEAM

February 18, 2026

Government Commitment To Strengthen National Defence

The President of the Republic, Nikos Christodoulidis, reaffirmed the government’s intention to enhance the country’s deterrence capabilities while expanding the potential of the domestic defense industry. Speaking during a high-level meeting at the Presidential Palace with members of the Cyprus Defence Industry Council, he outlined a strategy that connects national security priorities with long-term economic development.

Performance Assessment And Strategic Objectives

In the presence of Defence Minister Vasilis Palmas, the meeting focused on evaluating the achievements of the council one year following its establishment and delineating the path ahead. The President recalled, “Last year, we decided to institutionalize the Cyprus Defence Industry Council. Today, we review our targets and assess what has been achieved and what remains pending. We discussed the need for a registry of Cypriot companies. It is crucial to amplify the international presence of our enterprises. I remain deeply confident in your capabilities,” emphasizing a performance-driven approach aimed at enhanced operational transparency and market expansion.

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Positioning The Industry As A New Economic Pillar

President Christodoulidis expressed his firm belief that the Cypriot defence industry could emerge as a significant economic driver. He described it as a “promising new pillar” for the nation’s economy, bolstered by European initiatives such as the SAFE framework, supplementary equipment procurement plans from third countries, and participation in international trade exhibitions. Such strategies, he noted, open up further opportunities for local businesses to integrate into the global arms market.

International Outreach And Future Economic Impact

The President also pledged active support at an international level, citing his positive response to an invitation to Athens to engage in initiatives aimed at enhanced exposure and collaboration. He was confident that the industry’s contribution could realistically reach a double-digit share of Cyprus’ GDP in the coming years, a target he described as not only ambitious but entirely attainable given current capabilities.

Clear Vision For Measurable Progress

Concluding the meeting, President Christodoulidis reaffirmed his commitment: “I am fully aware of your potential. This is an emerging sector critical to both our economic future and our national security. Today, I expect us to review our concrete achievements, address the areas requiring improvement, and steer this initiative toward even greater success.” This decisive call for accountability and action underscores a broader strategic agenda that intertwines national defence imperatives with forward-looking industrial and economic policies.

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