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Cyprus Inflation Climbs To 2.6% In May 2026 Driven By Rising Oil Prices

Inflation Overview

Annual inflation in Cyprus reached 2.6% in May 2026, according to data released by the Statistical Service. Rising oil prices were among the main factors contributing to the increase. The Consumer Price Index (CPI) stood at 102.74 units in May, compared with 102.80 units in April, reflecting a monthly decline of 0.06 units. On an annual basis, however, prices continued to trend higher.

Sectoral Shifts And Monthly Trends

Compared with May 2025, the largest increases were recorded in Petroleum Products, which rose by 22.9%, and Agricultural Products, up 4.7%. Electricity and Water recorded the largest annual decline, falling by 3.7%. Every month, Electricity and Water posted the strongest increase at 5.5%, while Agricultural Products recorded the largest decrease, declining by 2.7%.

Key Annual Variations

Among the main expenditure categories, Transport recorded the highest annual increase at 9.5% compared with May 2025. Clothing and Footwear registered the largest decline, falling by 8.2%. Other notable increases were recorded in Leisure, Sports and Culture, which rose by 4.6%, and Housing, Water Supply, Electricity, Natural Gas and Other Fuels, up 4.2%.

Information and Communication declined by 4.2% over the same period. Compared with April 2026, Housing, Water Supply, Electricity, Natural Gas and Other Fuels recorded the largest monthly increase at 1.8%, while Transport declined by 1.1%.

Impact On Consumer Price Index

According to the Statistical Service, the largest positive contributions to annual inflation came from Restaurants and Accommodation Services, Leisure, Sports and Culture, and Alcoholic Beverages and Tobacco. Health, Information and Communication, and Clothing and Footwear had the strongest downward effect on annual inflation. Monthly, Housing, Water Supply, Electricity, Natural Gas and Other Fuels, Transport, and Food and Non-Alcoholic Beverages made the largest contributions to changes in the CPI.

Among individual products and services, Leisure Services recorded the strongest positive impact compared with May 2025, while Mobile Communication Services had the largest negative effect. For month-on-month changes, Electricity contributed the most to upward price movements, whereas Vegetables exerted the strongest downward influence on the index.

Cyberattacks On Governments, Infrastructure And Businesses Shape 2026

Cybersecurity has become an increasingly prominent issue in 2026 as cyber incidents continue to affect governments, businesses and critical infrastructure worldwide. Recent attacks have targeted sectors ranging from healthcare and education to energy and public administration, highlighting the growing impact of cyber threats on economic activity and national security.

Questions Remain Over DOGE’s Access To Social Security Data

More than a year after individuals linked to the Elon Musk-led Department of Government Efficiency (DOGE) gained access to systems at the Social Security Administration, questions remain about how sensitive data was handled. Court proceedings are ongoing following allegations that a copy of the Social Security database was transferred to an external server, potentially exposing personal information belonging to millions of Americans.

According to legal filings, the Social Security Administration has acknowledged uncertainty regarding the contents of the server. Lawmakers have warned that, if confirmed, the incident could rank among the largest data breaches involving government records in U.S. history.

Hackers Increasingly Target Water Systems And Energy Grids

Cyberattacks targeting critical infrastructure have continued across Europe, including incidents affecting energy networks and water systems. Authorities in Poland, Sweden and Norway have reported attacks linked to groups believed to be acting in support of Russian interests. At the same time, tensions in the Middle East have heightened concerns about cyber threats to critical infrastructure, particularly privately operated utilities with limited cybersecurity resources.

Iranian Government Hackers Target Stryker

In March, Iranian hackers reportedly carried out a cyberattack against medical technology company Stryker, wiping thousands of employee devices. The incident, attributed to a group linked to Iranian intelligence, disrupted operations and affected the company’s first-quarter financial performance.

Instructure Among Shinyhunters’ Disruptive Hacking Campaigns

The hacking group ShinyHunters has continued to rely on voice phishing techniques to gain access to corporate networks. One of the most prominent incidents involved education technology company Instructure, whose Canvas learning management platform was breached.

The attack exposed personal information belonging to more than 30 million users and disrupted academic schedules during examination periods. Other reported victims include Charter, Carnival and organisations operating in the finance and public sectors.

Supply Chain Attacks Continue To Target Technology Companies

Software supply chains have remained a major target for cybercriminals. Security researchers have linked a series of attacks to compromises involving tools and platforms used by software developers, including Aqua Security’s Trivy, Bitwarden and Checkmarx. Such incidents can have wider consequences across the technology industry because compromised software updates may provide attackers with access to credentials and internal systems.

FBI Reports Major Cyber Incident

The Federal Bureau of Investigation was compelled to declare a “major cyber incident” in April after one of its surveillance systems was breached by actors believed to be linked to Chinese intelligence. This breach, which reportedly exposed the phone numbers of individuals under surveillance, has raised serious concerns about national security and the integrity of federal surveillance operations.

Hasbro Faces Operational Disruptions Following Cyberattack

Toy manufacturer Hasbro experienced weeks of operational disruption after detecting a cyberattack in late March. The company reported website outages and other operational challenges before confirming in May that the attackers had been removed from affected systems. Regulatory filing delays and other business impacts are expected to continue in the near term.

Millions Of Identity Documents Exposed

Several data exposure incidents reported during the year affected systems used for identity verification and customer onboarding. Cases involving a hotel check-in platform, a money transfer service, a prison communications provider and a UK visa portal exposed passports, driver’s licences and other identification documents belonging to more than two million people. The incidents have raised concerns about the security of personal information collected as part of identity verification requirements.

Growing Focus On Cybersecurity

The incidents reported throughout 2026 demonstrate the increasing impact of cyber threats across both public and private sectors. As organisations continue investing in digital infrastructure and artificial intelligence, cybersecurity remains a central concern for governments, businesses and critical service providers.

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