Cyprus Achieves Zero Inflation Amid Eurozone Pressures

by THEFUTURE.TEAM

September 19, 2025

Stable Prices in an Unsteady Environment

Amid the current economic landscape, Cyprus has emerged as a standout performer by recording zero year-on-year inflation in August 2025, according to data released by Eurostat. This achievement is particularly notable given that the broader Eurozone experienced an average inflation rate of 2.0% while the European Union overall recorded 2.4%.

European Inflation Landscape: A Comparative Review

Eurostat’s findings reveal that in addition to Cyprus, countries such as France and Italy posted low inflation rates of 0.8% and 1.6% respectively. However, other member states experienced more pronounced inflationary pressures, with Romania, Estonia, and Croatia recording rates of 8.5%, 6.2%, and 4.6% respectively. This diverse range of outcomes underscores the varying economic pressures faced by different nations within the union.

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Sectoral Influences on Inflation

Analysis of the Eurostat data indicates that services contributed the most to the upward pressure on inflation at 1.44 percentage points, followed by food, alcohol, and tobacco, which added 0.62 percentage points, and non-energy industrial goods at 0.18 percentage points. In contrast, energy prices exerted a downward effect, reducing the overall inflation rate by 0.19 percentage points.

Month-Over-Month Trends and Historical Context

When compared with July 2025, nine EU member states experienced a decline in annual inflation, four remained stable, and fourteen saw an increase. Meanwhile, the Eurozone’s annual inflation rate slightly receded from 2.2% a year earlier, with the EU rate holding steady at 2.4%.

Conclusion

The data highlights Cyprus’ unique position within the European Union, maintaining price stability amid an environment of varying economic pressures. As stakeholders monitor inflation trends across sectors and regions, the contrasting performance of member states will provide valuable insights for policymakers and investors as they navigate the complex global economic landscape.

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Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

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The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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