Annual inflation in Cyprus is projected to rise to 3.1% in December 2024, a noticeable increase from 2.2% in November, according to a flash estimate by Eurostat, the European Union’s statistical office. This figure surpasses the eurozone’s average annual inflation rate, which is expected to edge up to 2.4% in December, compared to 2.2% in November.
Key Drivers Of Eurozone Inflation
Breaking down the eurozone inflation data, services are anticipated to record the highest annual rate at 4.0% in December, slightly up from 3.9% in November. Other contributing factors include:
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- Food, Alcohol & Tobacco: Stable at 2.7% compared to November.
- Non-Energy Industrial Goods: A minor decrease to 0.5%, from 0.6% in November.
- Energy: A significant recovery, moving to 0.1% in December after recording a deflationary rate of -2.0% in November.
A Closer Look At Cyprus
While eurozone inflation remains relatively subdued, Cyprus faces a sharper increase. The island’s higher inflation trajectory underscores the need for vigilance in monitoring price trends, particularly as global energy and service costs play a critical role in shaping inflationary pressures.
