Cyprus inflation report for August 2026

In August 2026, Cyprus experienced notable inflationary pressure, with reports from official bodies highlighting a persistent upward trend in consumer prices. According to the Statistical Service, the annual Harmonized Index of Consumer Prices reached 5.2%, driven heavily by a 15% surge in energy costs. Key sectors seeing significant annual increases include restaurants and accommodation services (13.3%) and transport (9.8%), while clothing, footwear, and communications saw price decreases.

Separately, the Consumer Protection Service's Price Observatory reported a 3.5% annual inflation rate for a basket of 250 consumer goods, noting that 40 out of 45 categories saw price hikes compared to August 2025. This report specifically identified oil products rising by 20.3% and electricity and water services by 6%. Data for this monitor were collected across 400 retail outlets nationwide, including supermarkets and bakeries.

Authorities attribute this ongoing economic situation to the recent conflict in the Middle East, which has disrupted markets over the past five months. While specific policy responses remain under observation, the disparity in reported figures—5.2% via the Harmonized Index versus 3.5% via the Consumer Price Observatory—reflects differences in the scope and methodology of the tracking baskets used by the respective government agencies.