Breaking news

Cyprus Inflation Climbs To 4% In June As Euro Area Price Growth Moderates

Cyprus’ annual inflation accelerated to an estimated 4% in June 2026, widening the gap with the euro area, where price growth continued to ease, according to flash estimates released on Tuesday by Eurostat.

Domestic Prices Move Higher

Consumer prices in Cyprus increased by 0.8% compared with May, based on the Harmonised Index of Consumer Prices (HICP), as inflationary pressures gathered pace across the domestic economy.

That contrasted with the broader euro area, where annual inflation is estimated to have slowed to 2.8% in June from 3.2% in May, extending the bloc’s gradual disinflation trend.

Cyprus Moves Further Above The Euro Area Average

The latest figures leave Cyprus well above the euro area’s average inflation rate, highlighting a divergence between domestic price developments and those across the single currency bloc. While inflation continued to moderate in much of the eurozone, price growth accelerated on the island.

Across the euro area, energy remained the largest contributor to inflation, posting an annual increase of 8.7% in June. Although still elevated, that represented a slowdown from 10.8% in May.

Services inflation also eased, falling to 3.2% from 3.5% a month earlier.

Food And Industrial Goods Show Softer Growth

Price growth moderated in several other categories as well. Inflation for food, alcohol and tobacco slowed to 1.6% from 1.9% in May, while non-energy industrial goods remained unchanged at 0.9%.

A Sharp Reversal From Spring

June’s reading marks a notable shift from earlier in the year. In March, Cyprus recorded one of the lowest inflation rates in the European Union at 1.5%, reflecting relatively subdued price pressures at the time.

Since then, inflation has accelerated as the impact of the conflict in the Middle East and Gulf region, particularly through higher energy costs, has become increasingly visible in consumer prices.

With annual inflation now reaching 4%, Cyprus has moved well above the euro area average, suggesting that imported cost pressures are playing a growing role in domestic inflation.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

eCredo
The Future Forbes Realty Global Properties
Aretilaw firm
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter