Cyprus recorded an estimated annual inflation rate of 4 per cent in June 2026, up from 3.5 per cent in May, according to flash figures released by Eurostat. This increase contrasts with the broader euro area, where annual inflation eased to 2.8 per cent in June from 3.2 per cent in May. The monthly inflation rate in Cyprus also rose by 0.8 per cent, as measured by the Harmonised Index of Consumer Prices (HICP).

Energy prices in the euro area saw the highest inflation at 8.7 per cent in June, though this was a decline from 10.8 per cent in May. Services inflation was estimated at 3.2 per cent, while food, alcohol, and tobacco inflation fell to 1.6 per cent. Non-energy industrial goods inflation remained steady at 0.9 per cent. Cyprus’s rising inflation rate marks a notable reversal from March 2026, when the country recorded one of the lowest inflation rates in the EU at 1.5 per cent, before inflation pressures linked to global geopolitical tensions and energy costs became more evident.

The data highlights that Cyprus continues to face stronger inflationary pressures compared to the euro area average, reflecting increased domestic price growth even as inflation slows across the single currency bloc.