The Cyprus Statistical Service (Cystat) reported that the inflation rate for October 2025 fell to -0.3 percent, indicating a period of mild deflation where consumer prices were slightly lower compared to October 2024. The Consumer Price Index (CPI) experienced a modest month-to-month increase, rising from 117.71 to 118.25 units since September 2025.
Sectoral Performance And Price Adjustments
This deflationary trend reflects a nuanced reshaping of the economy. Notably, the services sector led in positive change with a 3 percent increase over the past year, underscoring robust activity in industries such as restaurants and hotels, which also saw a significant CPI contribution of 0.48 units year-on-year. Conversely, sectors such as electricity and agricultural products recorded declines of 7.5 percent and 2.6 percent respectively, with electricity exhibiting the largest monthly change by 1.7 percent compared to September 2025.
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Detailed Analysis Of Category Shifts
The report highlights important variations across economic categories. Compared with October 2024, clothing and footwear prices declined by 6.7 percent, while food and non-alcoholic beverages decreased by 2.1 percent. In contrast, sectors including restaurants and hotels and education saw increases of 4.4 percent and 3.5 percent respectively. A comparison with September 2025 reveals an additional 3.6 percent increase in clothing and footwear, alongside a 1.2 percent uptick in education.
Impact On The Consumer Price Index
Analyzing the CPI components, the year-on-year impact in October 2025 was driven positively by categories such as restaurants and hotels (0.48 units) and education (0.16 units). However, the largest negative impacts were observed in food and non-alcoholic beverages (-0.52 units) and clothing and footwear (-0.51 units). On a month-to-month basis, clothing and footwear exhibited the highest impact at 0.25 units, while housing and related utilities also contributed meaningfully. Specific items, such as catering services, positively influenced the index by 0.50 units, whereas both clothing and electricity detracted by 0.43 units each, with fresh fruit marking the most significant single-item negative shift (0.15 units).
Conclusion
This detailed CPI analysis by Cystat underscores how varied sectoral dynamics are shaping the Cypriot economy. The slight deflation alongside divergent pricing trends across key categories provides critical insights for policymakers, investors, and businesses as they navigate a complex economic landscape.
