Annual inflation in Cyprus remains at 5.2 percent in September 2026

Annual inflation in Cyprus reached 5.2% in September 2026, remaining unchanged from the previous month, according to data from Eurostat and the Statistical Service. While the annual rate is significantly higher compared to September 2025, the monthly Harmonized Index of Consumer Prices (HICP) recorded a marginal decrease of 0.4% compared to August 2026. Cyprus currently ranks as having the fourth-highest inflation rate in the European Union, following Romania at 6.5%, Lithuania at 6.1%, and Bulgaria at 5.6%.

Energy remains the primary driver of inflation, with the sector recording a 20.2% annual increase. Other significant annual price hikes were observed in transport (+13.3%), restaurants and hotels (+11.2%), and housing, water, and electricity services (+9.5%). Conversely, sectors like clothing, footwear, and communications experienced price decreases. The Consumer Protection Service noted that 35 out of 45 basic consumer product categories were more expensive than they were a year ago.

The persistent high inflation is exerting pressure on household purchasing power. An analysis by the European Commission, the "European Employment and Social Outlook 2026," highlights that Cyprus is among the countries experiencing the most significant slowdown in real wage growth, further complicating the economic outlook for local households.