Cyprus annual inflation hits 4.4 percent in July 2026

In July 2026, Cyprus recorded an annual inflation rate of 4.4 percent, according to data from Eurostat and the national statistical service. This figure, based on the Harmonised Index of Consumer Prices (HICP), represents a continued upward trend from 4.1 percent in June and a sharp increase compared to the 0.1 percent recorded in July 2025. With this result, Cyprus ties with Bulgaria for the third-highest inflation rate in the European Union, trailing only Romania at 8.2 percent and Lithuania at 5.4 percent. The national rate significantly exceeds the EU average of 3.0 percent and the euro area average of 2.9 percent.

Sectoral analysis highlights that the most significant annual price increases were observed in restaurants and accommodation services at 12 percent, followed by housing, water, electricity, and fuels at 7 percent. Specifically, energy costs saw a 10.2 percent surge compared to the previous year. Conversely, clothing and footwear experienced a deflationary trend of 5.2 percent. The monthly increase of 0.7 percent from June to July 2026 further underscores the growing inflationary pressure on the domestic economy. While the national Consumer Price Index (CPI) stood at 2.9 percent, the harmonized indicator used for EU comparisons remains considerably higher, reflecting intense price pressures on food, housing, and transportation.