Cyprus recorded a 3.1% inflation rate in June, driven primarily by rising costs of fuel, food, and housing, according to the latest data from the Statistical Service. Despite price falls in some categories such as clothing and communication, the overall consumer price index indicates persistent pressure on household budgets.

Petroleum products surged by 21.17% year-on-year, while agricultural products and housing-related expenses also contributed significantly to inflation. The cost-of-living burden remains high compared with previous years, with a cumulative increase of nearly 8% over the last four years.

The Central Bank forecasts a temporary rise in inflation during 2026, influenced by international developments and the ongoing geopolitical situation in the Middle East. In response, the government extended reduced excise duties on fuel until September 2026 to help ease pressure on consumers.