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Cyprus Inflation Eases In October 2025 Amid Mixed Sector Performance

According to the Cyprus Statistical Service, October 2025 saw inflation ease by 0.3% in challenging economic conditions. The Consumer Price Index (CPI) increased to 118.25 units from 117.71 units in September, marking a monthly rise of 0.54 units, though the annual trend is in decline.

Sectoral Shifts: Electricity And Agricultural Products Under Pressure

When compared with October 2024, the service sector experienced the highest positive change at +3%. In stark contrast, the electricity segment plummeted by 7.5% and agricultural products dropped by 2.6%. Notably, electricity registered the largest monthly improvement with a 1.7% increase over September 2025.

Boosts In Dining And Education

The data reveals that Restaurants and Hotels recorded the most significant year-over-year increase at +4.4%, closely followed by Education at +3.5%. Conversely, Apparel and Footwear experienced a substantial decline of 6.7%, while Food and Non-Alcoholic Beverages fell by 2.1%. On a monthly basis, Apparel and Footwear surged by 3.6% and Education increased by 1.2%.

Year-To-Date Trends

From January through October 2025, the sectors recording the highest gains relative to the same period in 2024 were Restaurants and Hotels (+4.7%), Education (+3.7%), and Recreation and Culture (+3.3%). In contrast, Apparel and Footwear posted the steepest decline at –6.2%.

Impact Analysis On The CPI

A closer look at the annual CPI shift reveals that Restaurants and Hotels (+0.48) and Education (+0.16) contributed most positively. Meanwhile, Food and Non-Alcoholic Beverages (–0.52) and Apparel and Footwear (–0.51) were the largest detractors. On a monthly scale, Apparel and Footwear (+0.25) and the Housing, Water, Electricity and Gas sector (+0.12) played critical roles. Additionally, Food Services contributed an extra +0.50 on an annual basis, while negative effects were observed in Apparel Items (–0.43) and Electricity (–0.43).

Eurobank Plans €1 Billion Investment In AI And Digital Banking By 2028

Eurobank plans to invest about €1 billion in technology from 2025 through 2028, its largest technology investment program to date. The Banking Forward strategy focuses on digital banking, artificial intelligence, customer experience and a “phygital” model combining digital services with face-to-face support.

Digital Banking Dominates Customer Activity

Digital channels already account for 96% of Eurobank transactions, with 61% completed through the Eurobank Mobile App. Among customers aged 35 and under, digital adoption reaches 94%.

Customers make about 574 million annual logins across e/m-banking and more than 1 million digital transactions each day. During the first half of 2026, one in three banking products was acquired digitally.

AI Moves Into Everyday Banking

Eurobank is expanding the use of AI through tools including EVA, its digital customer assistant, and myEVA, an AI-powered voice assistant for employees. The technology is also being applied to mortgage assessments, customer feedback analysis and contractual documents.

The bank’s technology architecture is built around five areas: digital channels, customer experience orchestration, data and AI, core banking, and infrastructure and cloud. About 50% of its applications and digital channels are already cloud-based.

Investment Extends Beyond Technology

The program is intended to reshape how Eurobank operates, combining automation and AI with employee development and human support. The bank says the approach is designed to improve services while maintaining access to face-to-face banking when customers need it.

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