Cyprus inflation rises as investigation continues into Vasiliko LNG terminal

In June 2026, Cyprus recorded an inflation rate of 4%, up from 3.5% in the previous month, while the Eurozone average fell to 2.8%. Data from the Statistical Service of Cyprus indicates significant price increases, including a 21.2% rise in petroleum products, 9% in agricultural goods, 8.3% in transport, 5.6% in housing and utilities, and 5.1% in food items. These increases have led to higher costs for energy, transportation, and consumer goods. Simultaneously, the Vasiliko liquefied natural gas (LNG) terminal project is under investigation by the European Public Prosecutor's Office. Authorities are examining allegations of fraud, misuse of European funds, and corruption related to the infrastructure project. The total cost of the facility is estimated at approximately €542 million, with €101 million sourced from European funding. The terminal, which aimed to reduce reliance on expensive fuel, failed to meet its scheduled completion date of December.