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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.

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.

EU Moderates Emissions While Sustaining Economic Momentum

by THEFUTURE.TEAM
November 15, 2025

The European Union witnessed a modest decline in greenhouse gas emissions in the second quarter of 2025, as reported by Eurostat. Emissions across the EU registered at 772 million tonnes of CO₂-equivalents, marking a 0.4 percent reduction from 775 million tonnes in the same period of 2024. Concurrently, the EU’s gross domestic product rose by 1.3 percent, reinforcing the ongoing decoupling between economic growth and environmental impact.

Sector-By-Sector Performance

Within the broader statistics on emissions by economic activity, the energy sector—specifically electricity, gas, steam, and air conditioning supply—experienced the most significant drop, declining by 2.9 percent. In comparison, the manufacturing sector and transportation and storage both achieved a 0.4 percent reduction. However, household emissions bucked the trend, increasing by 1.0 percent over the same period.

National Highlights And Notable Exceptions

Among EU member states, 12 reported a reduction in emissions, while 14 saw increases, and Estonia’s figures remained static. Notably, Slovenia, the Netherlands, and Finland recorded the most pronounced declines at 8.6 percent, 5.9 percent, and 4.2 percent respectively. Of the 12 countries reducing emissions, three—Finland, Germany, and Luxembourg—also experienced a contraction in GDP growth.

Dual Achievement: Environmental And Economic Goals

In an encouraging development, nine member states, including Cyprus, managed to lower their emissions while maintaining economic expansion. This dual achievement—reducing environmental impact while fostering economic activity—is a trend that has increasingly influenced EU climate policies. Other nations that successfully balanced these outcomes include Austria, Denmark, France, Italy, the Netherlands, Romania, Slovenia, and Sweden.

Conclusion

As the EU continues to navigate its climate commitments, these quarterly insights underscore a gradual yet significant shift toward balancing emissions reductions with robust economic growth. The evolving landscape highlights the critical need for sustainable strategies that not only mitigate environmental risks but also invigorate economic resilience.

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