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Cyprus Inflation at 2.9% In January 2025: Key Drivers And Divergent Trends

In January 2025, Cyprus’ Harmonized Index of Consumer Prices (HICP) climbed 2.9% year-over-year, though it dipped 1.4% from December 2024, according to the Statistical Service. Here’s a breakdown of the major shifts by category:

Cyprus – What’s Moving The Needle

  • Biggest Annual Increases:
    • Recreation and Culture: +7.5%
    • Food and Non-Alcoholic Beverages: +5.3%
    • Restaurants and Hotels: +4.8%
  • Steepest Monthly Declines:
    • Clothing and Footwear: -13.7%
    • Food and Non-Alcoholic Beverages: -1.6%

Economic Categories In Focus

  • Highest Annual Gains:
    • Food, Alcoholic Beverages and Tobacco: +4.3%
    • Services: +4.2%
  • Notable Monthly Drop:
    • Non-Energy Industrial Products: -4%

Eurozone Snapshot By Eurostat

The Eurozone recorded an annual inflation rate of 2.5% in January 2025.

  • Country Highlights:
    • Greece: Inflation climbed to 3.1% (up from 2.9% in December 2024).
    • Lower Inflation Rates: Denmark at 1.4%; Ireland, Italy, and Finland at 1.7%.
    • Higher Inflation Rates: Hungary at 5.7%, Romania at 5.3%, and Croatia at 5.0%.
  • Core Inflation: Excluding food and energy, core inflation remains steady at 2.7% annually, with a monthly uptick of 0.9%, slightly below the initial 1% estimate.
  • Key Inflation Contributors:
    • Services: +1.77% (largest driver)
    • Followed by: Food, alcohol, and tobacco (+0.45%), Energy (+0.18%), and Non-energy industrial goods (+0.12%).

Compared to December 2024, annual inflation decreased in eight Member States, stayed flat in four, and rose in fifteen.

These figures underline a nuanced inflation landscape, with strong gains in leisure and dining offset by falling prices in clothing and non-energy industrial goods, while the broader Eurozone exhibits a mixed picture amid shifting economic pressures.

Nvidia Launches Open AI Security Alliance With Microsoft, Palantir And SpaceX

Nvidia and a coalition of technology companies on Monday launched the Open Secure AI Alliance, a new initiative aimed at strengthening artificial intelligence security through open models.

The alliance was announced days after a cyberattack involving OpenAI models targeted AI platform Hugging Face, an incident that renewed debate over whether open or closed AI systems are better suited for cybersecurity.

Open Models at the Core

Nvidia said the alliance will focus on identifying, disclosing and mitigating AI security vulnerabilities using open technologies.

“The Open Secure AI Alliance will work to remediate and disclose vulnerabilities using open technologies,” the company said in a statement. “The recent Hugging Face security incident delivered a clear reminder: cyber defenders need open, frontier agentic systems for self-defense.”

The alliance includes Microsoft, SpaceX, Palantir and dozens of other technology companies from the U.S. and Europe.

Open-weight models can be downloaded, modified and deployed on an organisation’s own infrastructure, allowing security teams to inspect and adapt them for defensive purposes. By comparison, proprietary models from companies such as OpenAI and Anthropic are generally accessed through controlled platforms.

U.S. Scrutiny of Chinese AI Grows

The initiative comes as U.S. policymakers weigh potential restrictions on Chinese AI models, particularly open-weight systems. Officials have raised concerns that some Chinese companies may be using distillation techniques to extract knowledge from leading U.S. AI models.

Treasury Secretary Scott Bessent said last week that Chinese companies involved in such activity could face sanctions.

Chris McGuire, senior fellow for China and emerging technologies at the Council on Foreign Relations, told CNBC that potential restrictions could extend beyond model downloads to include API access and cloud-hosted inference services. He added that the debate in Washington is centred on intellectual property protection rather than opposition to open-source AI.

Industry Pushes Back

Last week, Nvidia, Microsoft, Meta, Palantir and more than 20 other companies urged policymakers not to impose what they described as “premature restrictions” on open-weight AI models, warning such measures could reduce competition and encourage innovation to move overseas.

The launch of the Open Secure AI Alliance signals growing industry support for open AI systems as governments consider new regulatory and security measures.

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