In May 2025, Cyprus experienced a moderated inflationary trend with a notable decrease of 0.2 percent, despite a modest rise in the Consumer Price Index (CPI). The CPI advanced slightly by 0.26 points to 117.57 units from 117.31 in April 2025, demonstrating that while prices continue to rise, the pace has eased relative to previous periods.

Sectoral Highlights And Annual Comparisons

Analyzing annual performance, the agricultural sector led with a 4.7 percent increase, closely followed by a 3.5 percent rise in services. However, significant declines were recorded in petroleum products and electricity, dropping by 12.8 percent and 8.6 percent, respectively, over the year. Monthly, petroleum products decreased by 3.3 percent, marking the most substantial shift from April 2025.

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Consumer Categories: Winners And Losers

A closer look at specific categories reveals that, compared to May 2024, restaurants and hotels experienced the steepest price ascent at 4.9 percent, with recreation and culture and education also showing upward trends at 4.0 percent and 3.7 percent, respectively. In sharp contrast, transport and clothing, and footwear witnessed declines of 6.6 percent and 5.3 percent, respectively. Furthermore, between April and May 2025, clothing and footwear prices increased by 2.4 percent, while transport prices fell by an equal margin.

Impact Analysis Over The First Five Months

From January to May 2025, year-on-year fluctuations highlighted a 5.6 percent drop in clothing and footwear and a 4.6 percent rise in restaurants and hotels. Education also saw a 3.7 percent increase, reinforcing the mixed effects across consumer sectors.

Index Point Contributions

Examining the contributions toward the annual CPI change, restaurants and hotels added 0.52 points, while food and non-alcoholic beverages contributed 0.46 points. In a counterbalancing trend, the transport sector exerted a significant negative pressure, subtracting 1.21 points from the index. Fresh fruit and catering services provided positive impulses, adding 0.25 and 0.53 points respectively, whereas petroleum products had the most pronounced adverse impact, decreasing the index by 1.47 points.

Monthly Adjustments And Final Observations

When comparing May 2025 to April 2025, transport again emerged as a critical factor, reducing the index by 0.41 points. Conversely, fresh fruit and clothing items added 0.22 points and 0.14 points, respectively. The monthly trend was further influenced by a 0.30 point reduction from petroleum products, underscoring the role of energy prices in the broader inflation landscape.