According to the Cyprus Statistical Service, October 2025 saw inflation ease by 0.3% in challenging economic conditions. The Consumer Price Index (CPI) increased to 118.25 units from 117.71 units in September, marking a monthly rise of 0.54 units, though the annual trend is in decline.
Sectoral Shifts: Electricity And Agricultural Products Under Pressure
When compared with October 2024, the service sector experienced the highest positive change at +3%. In stark contrast, the electricity segment plummeted by 7.5% and agricultural products dropped by 2.6%. Notably, electricity registered the largest monthly improvement with a 1.7% increase over September 2025.
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Boosts In Dining And Education
The data reveals that Restaurants and Hotels recorded the most significant year-over-year increase at +4.4%, closely followed by Education at +3.5%. Conversely, Apparel and Footwear experienced a substantial decline of 6.7%, while Food and Non-Alcoholic Beverages fell by 2.1%. On a monthly basis, Apparel and Footwear surged by 3.6% and Education increased by 1.2%.
Year-To-Date Trends
From January through October 2025, the sectors recording the highest gains relative to the same period in 2024 were Restaurants and Hotels (+4.7%), Education (+3.7%), and Recreation and Culture (+3.3%). In contrast, Apparel and Footwear posted the steepest decline at –6.2%.
Impact Analysis On The CPI
A closer look at the annual CPI shift reveals that Restaurants and Hotels (+0.48) and Education (+0.16) contributed most positively. Meanwhile, Food and Non-Alcoholic Beverages (–0.52) and Apparel and Footwear (–0.51) were the largest detractors. On a monthly scale, Apparel and Footwear (+0.25) and the Housing, Water, Electricity and Gas sector (+0.12) played critical roles. Additionally, Food Services contributed an extra +0.50 on an annual basis, while negative effects were observed in Apparel Items (–0.43) and Electricity (–0.43).
