Cyprus’ annual inflation rate remained unchanged at 5.2% in September 2026, according to Eurostat’s preliminary estimate, keeping the country well above the euro area average of 3.8%.
On a monthly basis, however, prices in Cyprus are expected to have declined by 0.4%, suggesting some short-term easing even as the broader annual trend remains elevated. The latest reading confirms that inflation has held at August’s level after a steady climb in previous months.
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A Steady Rise Over Recent Months
Based on the Harmonised Index of Consumer Prices, Cyprus recorded an annual inflation rate of 3% in April, followed by 3.5% in May, 4.1% in June and 4.4% in July, before reaching 5.2% in August. In September 2025, the corresponding rate had been flat, underscoring how sharply price growth has accelerated over the past year.
The gap with the euro area is now significant. At 3.8%, inflation in the eurozone is 1.4 percentage points below Cyprus, highlighting the island’s more persistent price pressures.
Energy Remains The Main Driver
Across the euro area, energy is expected to post the strongest annual increase among the main inflation components. Prices in this category are estimated to have risen by 18.8%, up from 14.3% in the previous month.
Services are also expected to show continued momentum, with annual price growth forecast at 3.2%, compared with 3% in August. Inflation in food, alcohol and tobacco is estimated to have accelerated to 1.4% from 1.1%.
Some Relief In Industrial Goods
By contrast, non-energy industrial goods are expected to see a slight slowdown, with annual inflation easing to 1.1% from 1.2% in August. While modest, the decline suggests that price pressures in some parts of the economy are beginning to cool.
The latest figures point to a mixed picture for policymakers: weaker monthly prices may offer a degree of relief, but the annual rate remains elevated in Cyprus and continues to outpace the wider euro area by a wide margin.







