Restaurants, hotels and transport drive sharpest price rises in years, while clothing costs continue to fall
Consumer prices in Cyprus rose 5.2% in the year to August, official figures show, marking a significant acceleration in inflation driven largely by soaring energy and transport costs.
The Harmonised Index of Consumer Prices, published by the island’s Statistical Service, showed prices up 1.5% on the previous month alone, with the full-year figure well above the eurozone average, according to Eurostat’s flash estimate.
Restaurants and accommodation services recorded the steepest annual increase, up 13.3%, followed by transport, up 9.8%. Within the transport category, the month-on-month jump was even sharper, with prices rising 5.5% between July and August alone.
Energy prices proved the single biggest driver of overall inflation, rising 15% year-on-year and 4% on the month, reflecting the broader impact of higher global oil prices that has also weighed on the Cypriot economy since the outbreak of conflict in the Middle East. Services overall rose 7.4% annually, while non-energy industrial goods fell 2.4%.
Clothing and footwear was the only major category to register a significant annual decline, down 5.5% on the year and a further 1.5% on the month, continuing a downward trend from recent months. Prices for information and communication services also fell, down 1.6% year-on-year.
Food and non-alcoholic beverages rose 3.8% annually, while housing, water, electricity and other fuel costs were up 6.5% on the year, though this eased slightly month-on-month. Recreation, sport and culture prices climbed 4.4% annually and 1.2% on the month.
The Statistical Service noted that from January 2026 it had revised the products included in the index, based on the results of the 2023 Household Budget Survey, and had also switched to 2025 as its new base year and adopted an updated European product classification.
