Cyprus records 5.2% annual inflation rate in September 2026

In September 2026, Cyprus recorded an annual inflation rate of 5.2%, according to data released by Eurostat and the Statistical Service of Cyprus. This figure represents the fourth-highest rate within the European Union, following Romania at 6.5%, Lithuania at 6.1%, and Bulgaria at 5.6%. While the year-on-year inflation remains high, the monthly Harmonized Index of Consumer Prices (HICP) showed a marginal decline of 0.4% compared to August 2026.

The surge in annual inflation has been primarily driven by the energy sector, which saw a 20.2% increase compared to September 2025. Other significant contributors to rising household costs include transportation, which rose by 13.3%, and the restaurants and hotels sector, which recorded an 11.2% increase. For the first nine months of 2026, the cumulative increase in the HICP stands at 3.2% compared to the same period in the previous year.

These data reflect a continued economic strain on consumer budgets, particularly regarding housing, energy, and essential services. The current inflationary trajectory maintains Cyprus at a significant deviation from the Eurozone average, highlighting the ongoing impact of utility costs and services on the national economy.