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Cyprus Achieves Zero Inflation While EU Faces Rising Price Pressures

Overview Of Inflation Trends

Cyprus recorded a remarkable achievement in September 2025 by maintaining a 0.0% annual inflation rate, positioning it as the EU member state with the lowest inflation according to the latest figures released by Eurostat. This outcome contrasts with a broader European backdrop, where inflationary pressures continue to build.

Euro Area And European Union Dynamics

Across the euro area, annual inflation increased to 2.2% in September from 2.0% in August, up from 1.7% a year earlier. In the wider European Union, the inflation rate ascended to 2.6% in September from 2.4% in August, a rise from 2.1% recorded a year before. These figures underscore a steady upward trajectory in consumer price levels over the past year.

Diverse Economic Landscapes Across Member States

Within the EU, Cyprus stands out with its unchanged rate, followed by France at 1.1% and both Italy and Greece at 1.8%. At the opposite end of the spectrum, Romania, Estonia, Croatia, and Slovakia experienced much higher rates of inflation, with Romania at 8.6%, Estonia at 5.3%, and Croatia and Slovakia both at 4.6%. Such disparities highlight the varied economic conditions across the Union.

State By State Inflation Shifts

Comparative data from August 2025 indicates that annual inflation declined in eight member states, remained stable in four, and increased in fifteen, signaling broad-based upward price pressures that continue to challenge policymakers and businesses alike across the Union.

Components Driving The Inflation Surge

Examining the contributing components, the service sector emerged as the largest driver of inflation, adding 1.49 percentage points to the annual rate in the euro area. This was closely followed by the food, alcohol, and tobacco segments which contributed 0.58 percentage points. Non-energy industrial goods added 0.20 percentage points, while energy prices exerted a slight negative influence of -0.03 percentage points. These contributions reflect the complex interplay of various sectors in shaping overall consumer price dynamics.

Copyright Law Struggles To Keep Up With AI Training

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.

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