Energy and services drive Cyprus inflation higher in June
Cyprus’ annual inflation rate accelerated to 4.1 per cent in June 2026, significantly outpacing both the euro area and European Union averages, according to figures released on Friday by the Cyprus Statistical Service (Cystat) and Eurostat.
The figures showed that the Harmonised Index of Consumer Prices (HICP) increased by 4.1 per cent compared with June 2025, while prices rose 0.9 per cent between May and June 2026.
The latest reading marks a sharp acceleration from 3.5 per cent in May, 3.0 per cent in April, 1.5 per cent in March, 0.9 per cent in February and 1.2 per cent in January.
By comparison, Cyprus’ annual HICP inflation stood at just 0.5 per cent in June 2025.
Eurostat reported that annual inflation in the euro area eased to 2.8 per cent in June from 3.2 per cent in May, while inflation across the European Union declined to 2.9 per cent from 3.3 per cent.
A year earlier, inflation had stood at 2.0 per cent in the euro area and 2.3 per cent across the EU.
The figures underline that Cyprus’ inflation rate remained well above both European averages during June, despite inflationary pressures easing across much of the bloc.
Among the main expenditure categories in Cyprus, recreation, sports and culture recorded the largest annual increase, with prices rising 9.7 per cent compared with June 2025.
This was followed by restaurants and accommodation services, where prices increased by 8.9 per cent over the same period.
The largest annual declines were recorded in clothing and footwear, where prices fell 8.0 per cent, and information and communication, which declined 2.9 per cent.
Compared with May, the strongest monthly increases were recorded in restaurants and accommodation services, where prices rose 3.4 per cent.
Prices also increased by 1.9 per cent in recreation, sports and culture and by 1.6 per cent in housing, water, electricity, natural gas and other fuels.
Looking at the main economic categories, energy recorded the largest annual increase, rising 13.0 per cent compared with June 2025.
On a monthly basis, services posted the strongest increase, with prices climbing 1.8 per cent between May and June.
Across the European Union, 22 member states recorded lower annual inflation rates in June compared with May, while inflation remained unchanged in three countries and increased in two.
The lowest annual inflation rates were registered in Sweden at 1.0 per cent, the Czech Republic at 1.1 per cent and Denmark at 1.8 per cent.
The highest annual inflation rates were recorded in Romania at 9.2 per cent, followed by Lithuania at 5.4 per cent and Bulgaria at 5.2 per cent.
According to Eurostat, services made the largest contribution to euro area inflation, adding 1.51 percentage points to the annual rate.
Energy contributed 0.77 percentage points, while food, alcohol and tobacco added 0.29 percentage points and non-energy industrial goods contributed 0.18 percentage points.
The latest figures indicate that while inflationary pressures have begun to moderate across the euro area and the wider European Union, Cyprus experienced a marked acceleration in consumer prices during June, driven primarily by higher costs for energy, leisure activities and hospitality services.
