Breaking news

Cyprus CPI Increases 1.2% In January As Sector Trends Diverge

by THEFUTURE.TEAM

February 27, 2026

Overview Of Cyprus CPI Performance

Cyprus’ Harmonised Consumer Price Index (HCPI) rose 1.2% in January 2026 compared with the same month a year earlier, according to data released by the Statistical Service of Cyprus. The figures indicate moderate price growth following higher inflation levels recorded in early 2025.

Yearly And Monthly Trends In Consumer Prices

On an annual basis, the largest price increases were recorded in Recreation, Sports and Culture (+5.8%), Restaurants and Accommodation Services (+4.8%), and Educational Services (+3.4%). Clothing and Footwear posted the steepest decline, falling 6.2% year over year. Every month, consumer prices decreased by 0.3% compared with December 2025. Food and Non-Alcoholic Beverages rose 3.7% month over month, while Clothing and Footwear fell 12.1%.

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

Sectoral And Economic Category Analysis

Examining economic categories on an annual basis reveals that Services led with a 4.3% increase, while Energy showed the most significant decline at -6.5%. Moreover, a month-over-month review indicated a 3.7% reduction in Non-Energy Industrial Products, underscoring the varied dynamics across different sectors.

Eurostat Insights And Comparative European Performance

Eurostat data shows Cyprus recorded one of the lowest annual inflation rates in the European Union in January 2026, at 1.2%, down from 2.9% a year earlier. Across the eurozone, annual inflation stood at 1.7%, while core inflation, excluding energy and food, reached 2.2%. Inflation across the wider EU slowed to 2%, compared with 2.3% in December.

International Variations And Sector Contributions

Among EU member states, France (0.4%), Denmark (0.6%), Finland (1%), and Italy (1%) reported the lowest inflation rates. Higher readings were recorded in Romania (8.5%), Slovakia (4.3%), and Estonia (3.8%). Compared with December 2025, inflation declined in 23 EU countries, remained unchanged in one, and increased in three. Within the eurozone, Services made the largest contribution to annual inflation, adding 1.45 percentage points, followed by Food, Alcohol, and Tobacco at 0.51 points. Energy made a negative contribution of -0.39 points.

The Future Forbes Realty Global Properties

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.