Cyprus inflation rises to 3.7 percent in May

According to preliminary data released by Eurostat on Tuesday, Cyprus recorded an annual inflation rate of 3.7% in May 2026. This figure marks an increase from 3% in April and 1.5% in March, representing the highest level since September 2023. The May inflation rate in Cyprus is currently higher than the average for the eurozone, which is estimated at 3.2%. Reports indicate that rising energy costs, exacerbated by the conflict in the Middle East, are primary factors driving these price increases. In comparison, May 2025 saw a significantly lower inflation rate of 0.4%. Within the broader eurozone, energy costs are expected to show the highest annual growth rate at 10.9%. Other contributors to eurozone inflation include services at 3.5% and non-energy industrial goods at 0.9%, while food, alcohol, and tobacco prices are expected to rise by 2.0%.