Cyprus Reports Subdued Inflation In December 2025 Amid Stabilized Consumer Prices

by THEFUTURE.TEAM

January 19, 2026

Steady Inflationary Signals

In a decisive report issued by Cyprus’ state statistical service (Cystat), the Harmonised Index of Consumer Prices (HICP) for December 2025 reveals a notably subdued inflation environment. The index showed an annual increase of just 0.1 percent relative to December 2024, while recording a monthly decline of 0.4 percent compared to November 2025.

Yearly Overview and Sector Dynamics

Throughout the 2025 calendar year, consumer prices registered a marginal rise of 0.8 percent over the same period in the previous year. Among the sectors exerting upward pressure, the leisure and hospitality segments led with notable increases. Specifically, recreation and culture prices surged by 5.1 percent, while restaurants and hotels saw a 4.4 percent rise on an annual basis.

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Conversely, the data highlighted notable price reductions in key areas. Clothing and footwear experienced a significant decline of 7.9 percent, while the housing sector—encompassing water, electricity, and gas—fell by 3.2 percent. This mixed sectorial performance underscores the varying demand dynamics across consumer categories.

Monthly Trends and Economic Implications

The month-on-month analysis for December 2025 against November 2025 further underscores the predominantly tepid inflationary pressures. Transport costs depreciated by 1.7 percent, and the restaurants and hotels segment continued its downward trend with a 0.9 percent decline. Notably, over the full year, clothing and footwear prices dropped by 6.4 percent, while energy costs eased, decreasing by a substantial 5.4 percent, thus dampening broader inflation metrics.

Conclusion: A Balanced Economic Outlook

Taken together, these figures indicate that while consumer-facing services—particularly in the leisure and hospitality sectors—saw some price increases, the overall inflationary landscape in Cyprus at the end of 2025 remained controlled. The interplay of price fluctuations between services and goods, combined with easing energy prices, suggests a carefully balanced economic environment heading into the new year.

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Cyprus Introduces €200 Million Support Measures To Cut Energy And Food Costs

by THEFUTURE.TEAM

March 27, 2026

Comprehensive Relief Measures For A Resilient Economy

The government of Cyprus introduced support measures exceeding €200 million to reduce household expenses and support key sectors. The package targets energy costs, food prices, tourism and agriculture. Measures come in response to rising costs and supply pressures. Implementation begins in April and May 2026.

Energy And Fiscal Reforms

The government will reduce VAT on electricity for households to 5% from May 1, 2026, to March 31, 2027. The measure is expected to lower energy bills. Special consumption tax on transport fuels will decrease by 8.33 cents per liter between April and June 2026. Policy targets fuel-related costs.

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Broadening The Zero VAT Initiative

Authorities will expand the list of products with zero VAT. Meat, poultry and fish will be included from April 1 to September 30, 2026. Existing zero-VAT categories already include fruits and vegetables. The government also decided not to introduce a green tax on fuels, avoiding an additional cost of about 9 cents per liter.

Sector-Specific Supports

The package includes a 30% wage subsidy for hotel employees for April 2026. Measure supports tourism businesses during the early season. Support for airlines aims to maintain connectivity with key destinations. The agriculture sector will receive subsidies covering 15% of costs for fertilizers and supplies in April and May.

Economic Stability, National Security

President Nikos Christodoulidis said economic stability remains a priority for the government. He noted that growth, fiscal balance and inflation trends support current policy decisions. Statement links economic policy with broader national priorities. The government continues to monitor external risks.

Ensuring Consumer Protection

Furthermore, the government has mandated rigorous market oversight and intensified inspections to prevent exploitative pricing during this period of economic intervention. This proactive stance ensures that the benefits of the measures directly serve the citizens without unintended inflationary impacts.

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