Cyprus Reports Subdued Inflation In December 2025 Amid Stabilized Consumer Prices

by THEFUTURE.TEAM

January 19, 2026

Steady Inflationary Signals

In a decisive report issued by Cyprus’ state statistical service (Cystat), the Harmonised Index of Consumer Prices (HICP) for December 2025 reveals a notably subdued inflation environment. The index showed an annual increase of just 0.1 percent relative to December 2024, while recording a monthly decline of 0.4 percent compared to November 2025.

Yearly Overview and Sector Dynamics

Throughout the 2025 calendar year, consumer prices registered a marginal rise of 0.8 percent over the same period in the previous year. Among the sectors exerting upward pressure, the leisure and hospitality segments led with notable increases. Specifically, recreation and culture prices surged by 5.1 percent, while restaurants and hotels saw a 4.4 percent rise on an annual basis.

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Conversely, the data highlighted notable price reductions in key areas. Clothing and footwear experienced a significant decline of 7.9 percent, while the housing sector—encompassing water, electricity, and gas—fell by 3.2 percent. This mixed sectorial performance underscores the varying demand dynamics across consumer categories.

Monthly Trends and Economic Implications

The month-on-month analysis for December 2025 against November 2025 further underscores the predominantly tepid inflationary pressures. Transport costs depreciated by 1.7 percent, and the restaurants and hotels segment continued its downward trend with a 0.9 percent decline. Notably, over the full year, clothing and footwear prices dropped by 6.4 percent, while energy costs eased, decreasing by a substantial 5.4 percent, thus dampening broader inflation metrics.

Conclusion: A Balanced Economic Outlook

Taken together, these figures indicate that while consumer-facing services—particularly in the leisure and hospitality sectors—saw some price increases, the overall inflationary landscape in Cyprus at the end of 2025 remained controlled. The interplay of price fluctuations between services and goods, combined with easing energy prices, suggests a carefully balanced economic environment heading into the new year.

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Cyprus Tourism Recovers After Difficult Start To 2026

by THEFUTURE.TEAM

October 26, 2026

Cyprus’ tourism sector is recovering after a sharp decline in arrivals earlier this year, but Deputy Minister of Tourism Kostas Koumis has warned that the industry remains vulnerable to external shocks. Presenting the department’s €59.4 million budget for 2027, he stressed that continued growth cannot be taken for granted.

Arrivals Recover After A Sharp Early-Year Decline

Tourist arrivals fell by 5.6% in the first nine months of 2026 compared with the same period last year, Koumis said. This marks a significant improvement from the 17.9% decline recorded during the first four months, although the recovery remains incomplete.

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Despite the setback, arrivals between January and September were 4.1% higher than in 2024 and 8.5% above 2023 levels. Koumis said the figures indicated that the sector had entered a recovery phase, but added that more work was needed to restore demand in certain markets.

An Unprecedented Shock For The Industry

Koumis described 2026 as one of the most difficult years for Cyprus’ tourism sector in decades. External developments triggered widespread cancellations and a sharp slowdown in bookings during March and April, with tens of thousands of reservations cancelled and new bookings largely stalling.

“2026 will undoubtedly remain in the history and memory of those working in the sector as a year during which our country’s tourism industry was called upon to face an unprecedented crisis as a result of external factors,” he told lawmakers.

Budget Focuses On Promotion And Development

Around 62% of the proposed 2027 budget will go towards promoting Cyprus and strengthening its tourism offering. Funding will support marketing campaigns, participation in international tourism fairs and incentive schemes designed to stimulate demand and improve the island’s competitiveness in key markets.

Tourism Revenue Remains Below 2025 Levels

Tourism receipts fell by 7% in the first seven months of 2026 compared with the same period in 2025, according to the Cyprus Statistical Service. However, revenue remained 9.2% above 2024 levels and 13.8% higher than in 2023.

Koumis said the final outcome would depend on performance during the remaining months. If receipts follow a trajectory similar to 2025, he expects the full-year decline to be limited to between 3% and 4%, which he described as “a very satisfactory performance” under the circumstances.

Recovery Does Not Guarantee Future Growth

September recorded what Koumis described as the strongest September on record for tourist arrivals in Cyprus. However, he cautioned against complacency, noting that the disruption earlier in the year demonstrated how quickly external events can affect the sector.

“Success in tourism can never be taken for granted,” he said.

The government aims to ensure that tourism continues to benefit Cyprus’ economy, businesses and local communities in 2027. The proposed budget places particular emphasis on promotion and product development, reflecting a strategy focused on consolidating the recovery while preparing the sector for further uncertainty.

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