Cyprus Posts Exceptionally Low Inflation Amid Eurozone Price Easing

by THEFUTURE.TEAM

January 21, 2026

Cyprus has once again recorded one of the lowest inflation rates in the European Union, with Eurostat reporting a mere 0.1 percent annual increase in December 2025. This figure not only reinforces Cyprus’s status as the EU’s price-stability leader but also underscores a broader trend of easing price pressures across both the euro area and the wider bloc.

Cyprus: An Outlier in Price Stability

While many EU nations have experienced fluctuating inflation, Cyprus continues to operate well below both the euro area and EU averages. Alongside France, which reported an annual inflation rate of 0.7 percent, and Italy at 1.2 percent, Cyprus stands distinctively apart from economies facing more significant inflationary challenges.

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Shifting Trends in the Eurozone and EU

Across the euro area, annual inflation eased from 2.1 percent in November to 1.9 percent in December 2025, compared to 2.4 percent a year earlier. Similarly, the overall European Union inflation rate moderated to 2.3 percent from 2.4 percent the previous month, on the back of a 2.7 percent rate recorded a year ago. Such figures highlight a broad-based tempering of inflationary pressures across the region.

Sector Contributions to the Inflation Mix

A closer look at the euro area reveals that services fuel much of the annual inflation increase, contributing 1.54 percentage points. Additionally, the combined impacts of food, alcohol, and tobacco added 0.49 percentage points, while non-energy industrial goods contributed a modest 0.09 percentage points. Notably, falling energy prices subtracted 0.18 percentage points from the overall rate, further underscoring the mixed drivers behind current price trends.

Comparative Analysis: East Versus West

In stark contrast to Cyprus’s subdued inflation, eastern European countries like Romania are experiencing significantly higher inflation rates, with Romania peaking at 8.6 percent. Other nations such as Slovakia and Estonia reported rates of 4.1 percent and 4.0 percent respectively. These comparative figures offer valuable insight into the divergent inflationary environments within the EU, highlighting regional economic dynamics that policymakers continue to monitor closely.

Overall, the December figures illustrate that while a majority of EU member states witnessed a decline in annual inflation, a nuanced picture remains, with some nations showing stability or even slight increases. As the euro area navigates these turbulent economic conditions, Cyprus’s performance remains a benchmark for price stability in an ever-evolving fiscal landscape.

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Bird Aviation Signs Long-Term EasyJet Maintenance Deal In Cyprus

by THEFUTURE.TEAM

July 30, 2026

Bird Aviation has signed a long-term agreement with easyJet to provide scheduled aircraft maintenance services at its Larnaca facilities, expanding the companies’ existing partnership and securing maintenance work in Cyprus for at least seven years.

Seven-Year Maintenance Agreement

The agreement runs for an initial seven years, with an option to extend for a further three years, Bird Aviation said.

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Under the contract, the company will operate two maintenance lines dedicated to scheduled heavy maintenance checks for easyJet’s Airbus A320 family aircraft. All work will be carried out at Bird Aviation’s facilities in Larnaca.

Expanding An Existing Partnership

Bird Aviation said the agreement builds on its long-standing relationship with easyJet and provides a long-term framework for heavy maintenance services. The company added that the contract strengthens the role of its Larnaca base in supporting easyJet’s fleet maintenance programme.

EasyJet Reports Lower Profit

The agreement comes as easyJet faces a more challenging operating environment. The airline recently reported that pre-tax profit fell 70% to £85 million in the April-to-June quarter, compared with £286 million a year earlier, largely because of a £105 million increase in fuel costs following renewed conflict in the Middle East.

The airline also said customers are booking flights closer to departure, affecting the timing of revenue. However, booking trends have improved during the peak summer season, although easyJet said the outlook remains dependent on late-season demand and fuel prices.

Takeover Bid And Industry Challenges

EasyJet is also the subject of competing takeover bids from two U.S. investment firms. The board initially accepted a £5.5 billion offer from Castlelake before recommending Apollo Global Management’s higher £5.7 billion proposal. Any transaction could face scrutiny under European Union airline ownership rules.

Meanwhile, Ryanair also reported weaker earnings, with quarterly profit falling 34% to €538 million after higher jet fuel costs during the Iran conflict. Despite the higher costs, both airlines said demand strengthened during the summer travel season.

“Pricing has been attractive, driving strong late booking demand for our flights and holidays,” easyJet chief executive Kenton Jarvis said.

“Our recent experience is that bookings become strong in the month of departure,” he said. “So I expect that as we move through August, bookings will be above where they were at this time last year.”

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