Cyprus’s annual harmonised inflation rate reached 5.2% in September 2026, driven by higher transport costs, restaurant and accommodation prices, and housing and utility expenses, according to the Statistical Service. Energy remained a major source of pressure, with prices rising 20.2% year on year.

Transport And Hospitality Record Biggest Annual Increases

Compared with September 2025, prices rose most sharply in transport, up 13.3%, followed by restaurants and accommodation services, which increased by 11.2%. Housing, water, electricity, gas and other fuels recorded a 9.5% rise.

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By contrast, clothing and footwear prices fell by 10.4%, while information and communication costs declined by 0.9%.

Monthly Inflation Eases

Despite the annual increase, the Harmonised Index of Consumer Prices fell by 0.4% compared with August. Over the first nine months of 2026, however, the index rose by 3.2% compared with the same period last year.

Housing, water, electricity, gas and other fuels recorded the largest monthly increase, at 3.3%. Educational services rose by 1.5%, while food and non-alcoholic beverages increased by 1.3%.

Prices for restaurants and accommodation services fell by 3.3% month on month, while transport costs declined by 2%.

Energy Remains A Key Pressure Point

Energy prices rose by 5% between August and September, bringing their annual increase to 20.2%. The figures highlight the continued pressure on household budgets and business operating costs despite the monthly decline in the overall inflation index.