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Inflation In Cyprus Climbs To 3.5% In May

by THEFUTURE.TEAM

June 23, 2026

Overview Of CPI Growth

The harmonized Consumer Price Index (CPI) increased by 3.5% in May 2026 compared to May 2025, according to data released by the Statistical Service. A closer look at the figures reveals that the transportation (up by 9.7%) and leisure, sports, and culture (up by 7.8%) sectors experienced the most significant increases. In contrast, the apparel and footwear (-8.5%) and information and communication (-2.9%) categories registered notable decreases. Month-over-month data also indicate a 0.8% rise in the index from April 2026.

Sector-Specific Changes And Their Implications

Among the categories monitored, the restaurant and accommodation services (up by 4.9%) and housing, water, electricity, natural gas and other fuels (up by 2.0%) exhibited the largest changes. The energy sector, however, registered the most dramatic shifts, reflecting a 12.6% increase compared to May 2025 and a 2.1% rise relative to April 2026, underscoring its growing weight in overall inflationary trends.

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Regional Inflation Comparisons And European Insights

Eurostat data further confirm that Cyprus recorded an annual inflation rate of 3.5% in May 2026, surpassing the averages for both the eurozone and the European Union. In this period, annual inflation in Cyprus moved from 3.0% in April 2026 to 3.5% in May, with monthly prices climbing by 0.7%. In comparison, the broader European Union saw annual inflation at 3.3%, up from 3.2% the previous month, while the eurozone’s rate edged up to 3.2% from 3.0%. In May 2025, inflation was reported at 2.2% for the EU and 1.9% for the eurozone. Notably, countries such as Sweden (1.1%), Denmark (1.8%), and the Czech Republic (1.8%) achieved lower inflation rates, while Romania (9.7%), Bulgaria (6.3%), and Lithuania (5.1%) recorded the highest.

Eurostat Findings And The Role Of Service And Energy Costs

According to Eurostat, services remain the foremost factor influencing inflation across the eurozone. Simultaneously, energy costs have exerted an increasingly significant impact compared to previous months, further complicating the inflationary landscape in the region.

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Cyprus Fuel Prices Jump 20.5% As Energy Costs Rise Across The EU

Cyprus recorded a 20.5% year-on-year increase in the prices of fuels and lubricants for personal transport in May 2026, according to Eurostat data released on Monday.

The increase was broadly in line with the European Union average of 20.7%, with fuel and lubricant prices rising across all EU member states during the period.

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Cyprus Tracks The EU Average

Among EU countries, the largest annual increases were recorded in Bulgaria (33.9%), Luxembourg (32.2%), Lithuania (30.8%) and Romania (30.4%). At the other end of the scale, Hungary registered the smallest increase at 3.5%, while annual growth ranged from 12.7% in Poland to 29.2% in France across the remaining member states.

Eurostat noted that fuel and lubricant prices generally declined across the EU until February 2026 before moving higher in subsequent months.

Diesel And Petrol Follow Different Paths

Across the European Union, diesel prices increased by 29% in May 2026 compared with the same month a year earlier, while petrol prices rose by 16.2%. Monthly trends, however, were more mixed. Between April and May 2026, diesel prices across the EU fell by 5.8%, whereas petrol prices increased by 0.8%.

In Cyprus, diesel prices declined by 1.5% over the same period. Although lower than in April, the decrease was less pronounced than in Germany (-11.9%), Greece (-8.5%), Estonia (-8.4%) and Ireland (-8.1%).

Petrol prices moved in the opposite direction, rising by 2.1% between April and May. A similar pattern was observed across much of the EU, with 23 member states reporting monthly increases. Italy recorded the largest monthly rise in petrol prices at 6.9%, while decreases were reported in Germany (-5.6%), Ireland (-2.0%) and Sweden (-0.7%).