Inflation in Cyprus accelerated to 4% in June 2026, up from 3.5% in May, according to Eurostat’s flash estimate for the Harmonised Index of Consumer Prices.
On a monthly basis, prices in Cyprus increased by 0.8%, one of the largest monthly increases recorded in the eurozone in June.
This development stands in contrast to the overall picture across the eurozone, where annual inflation fell to 2.8% from 3.2% in May. This means that Cyprus was running significantly above the eurozone average, by a margin of 1.2 percentage points.
With inflation at 4% in June, Cyprus ranked among the countries recording the highest annual price increases in the euro area. Higher rates were registered only in Lithuania at 5.5%, Bulgaria at 5.3% and Croatia at 4.2%, while Greece followed immediately behind Cyprus with inflation of 3.9%.
At the opposite end of the scale, the lowest inflation rates were recorded in Malta at 1.9%, Estonia and France at 2.0%, and Germany at 2.4%.
This picture shows that Cyprus is much closer to the group of countries experiencing strong inflationary pressures than to the core group of economies where price growth remains more moderate.
Across the eurozone
At eurozone level, the easing of inflation in June was linked mainly to a slowdown in energy prices, where the annual rate stood at 8.7%, down from 10.8% in May.
A slowdown was also recorded in services, where inflation fell to 3.2% from 3.5%, as well as in food, alcohol and tobacco, where it declined to 1.6% from 1.9%, while non-energy industrial goods remained unchanged at 0.9%.
The Central Bank expects inflation in Cyprus to increase temporarily during 2026 as a result of the direct and indirect effects of international developments before subsequently easing.
In 2026, inflation, based on the Harmonised Index of Consumer Prices, is projected to increase significantly to 3.2% from 0.8% in 2025, mainly because of the economic impact of the war in the Middle East.
In 2027 and 2028, inflation is expected to fall to 1.9%, mainly as a result of the anticipated downward base effect on energy prices, as well as the gradual slowdown in services prices and, to a lesser extent, in other prices.
