Cyprus inflation remains among highest in EU in July 2026

Cyprus recorded an annual inflation rate of 4% in July 2026, according to preliminary Eurostat data based on the Harmonized Index of Consumer Prices (HICP). While this reflects a marginal decrease from the 4.1% recorded in June 2026, the country maintains one of the highest inflation rates in the European Union, trailing only Lithuania at 5.6% and Bulgaria at 4.1%.

This inflationary environment marks a significant shift compared to July 2025, when inflation in Cyprus stood at just 0.1%, representing a total increase of 3.9 percentage points year-on-year. Meanwhile, across the eurozone, inflation is projected to rise to 2.9% in July 2026 from 2.8% in June. Energy costs remain a primary driver of these pressures, with eurozone energy inflation estimated at 10%, followed by services at 3.3%.

Analysts link these persistent pressures to rising service costs, energy volatility, and ongoing geopolitical tensions in the Middle East. These factors continue to create uncertainty regarding future price stability for both transport and energy sectors within the region.