Overview Of The Deflationary Shift

November figures from the Statistical Service of Cyprus reveal a notable deflation of -0.5% as consumer prices decreased to 117.57 units from October’s 118.25. This trend reinforces the broader narrative of declining inflation, marked by significant price cuts in core sectors, which in turn ease the cost of living for consumers.

Sectoral Dynamics And Price Changes

Analysis indicates that several key categories experienced pronounced decreases. Most notably, deflationary pressures were particularly robust in electricity and agricultural products, with year-on-year declines of -7.9% and -6.2%, respectively. When compared month by month (November vs. October 2025), agricultural products dropped by 7.6%, contributing significantly to the overall decline of the Consumer Price Index (CPI).

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Food, Clothing, And Price Influences

Delving into category specifics, food and nonalcoholic beverages registered a 3.1% decrease on an annual basis and a 3.2% decline when compared monthly. Similarly, apparel and footwear experienced a 7.6% annual drop. These sectors exerted a substantial downward influence on the CPI with negative contributions of -0.74 and -0.59 units, respectively.

Areas Of Price Increases

Despite the widespread decline, certain service-oriented sectors have seen price increases. The hospitality sector, which includes restaurants and hotels, appreciated by 5% on a yearly basis. The education sector and recreation and culture also saw increases of 3.3% and 3.2%, respectively, between November 2025 and the corresponding period. Overall, services have driven a 3.1% annual increase, marking them as the primary source of positive pressure on prices.

Factors Shaping The CPI

Annual Analysis (November 2025 – November 2024)

The annual assessment identifies key drivers, both upward and downward. On the positive side, the hospitality sector contributed an increase of 0.54 units, while education and recreation and culture added 0.15 and 0.14 units, respectively. Conversely, major downward forces included food and nonalcoholic beverages, subtracting 0.74 units; apparel and footwear, with -0.59 units; and electricity, which decreased by 0.45 units. The subcategory of apparel items further reduced the index by 0.47 units.

Monthly Analysis (November 2025 – October 2025)

At the monthly level, positive contributions were minimal, with potatoes leading the small upward adjustment at +0.10 units. The most significant negative impacts were observed within fresh vegetables at -0.79 units and the broader category of food and nonalcoholic beverages at -0.77 units.

Conclusion: Prospects For Future Price Stability

The consistent easing of inflationary pressures—especially in essential categories such as electricity, food, and agricultural goods—positions Cyprus for potential consumer relief and further stabilization of prices in the coming months. This trend not only bodes well for everyday households but also suggests a cautious optimism among businesses adapting to the evolving economic landscape.