Eurostat reports inflation divergence between Cyprus and the euro area in June 2026

According to Eurostat's flash estimate for June 2026, Cyprus experienced an increase in annual inflation to 4.0%, up from 3.5% in May. This upward trend in Cyprus contrasts with the broader euro area, where annual inflation slowed to 2.8% from 3.2% in May. On a monthly basis, inflation in Cyprus rose by 0.8%. Eurostat data indicates that Cyprus has seen a consistent increase in inflation over recent months, rising from 1.2% in January to 4.0% in June, significantly higher than the 0.5% recorded in June 2025. Across the euro area, energy prices continued to record the highest annual inflation rate at 8.7%, despite a deceleration from 10.8% in May. Services inflation in the euro area stood at 3.2%, while food, alcohol, and tobacco reached 1.6%. Non-energy industrial goods remained stable at 0.9%. Among EU member states, Cyprus recorded the fourth-highest inflation rate after Lithuania (5.5%), Bulgaria (5.3%), and Croatia (4.2%).