Cyprus inflation rises as cost-of-living pressures intensify

In June 2026, inflation in Cyprus reached 3.1% according to the Statistical Service, while Eurostat reported a harmonized figure of 4%. Significant annual price surges were recorded in petroleum products (21.17%) and agricultural goods (9.01%), contributing to the overall cost-of-living crisis. Transport costs rose by 8.26%, and housing, water, and energy expenditures increased by 5.60%. To address these pressures, the Council of Ministers extended reduced excise duty rates on fuel until September 17, 2026. Data from the ECB’s 2023 Household Finance and Consumption Survey indicates that while Cypriot households possess higher net wealth, their income levels remain lower than the Eurozone average. Policy makers are currently assessing the impact on various population groups to determine necessary remedial reforms. The cumulative rise in the price index from 2022 to 2026 reached 7.96%.