Cyprus Inflation Climbs To 3.1% In June Driven By Rising Costs
Driven by Transport, Housing and Food Prices
Inflation in Cyprus reached a multi-year high of 3.1% in June 2026, driven by surging costs in transport, housing, and food, despite a decline in clothing and footwear prices.
June Inflation Reaches Multi-Year High
Inflation in Cyprus accelerated to 3.1% in June 2026, according to data released by the Statistical Service of Cyprus on Thursday, with the largest annual price increases recorded in transport, housing and food. On a monthly basis, the Consumer Price Index (CPI) rose by 0.25%. June's inflation rate was the highest recorded since October 2023. The CPI increased to 103.00 points in June from 102.74 points in May, rising by 0.26 points. Compared with June 2025, the annual inflation rate stood at 3.1%.
Key Shifts in Economic Categories
By economic category, the largest year-on-year increases were recorded in petroleum products, which rose by 21.2%, and agricultural products, up by 9.0%, while industrial products excluding petroleum products declined by 1.0%. Compared with May 2026, the largest monthly increase was recorded in electricity and water, which rose by 4.1%, while petroleum products fell by 1.1%.
Primary Drivers of Goods and Services Costs
Among the main categories of goods and services, the largest annual increases were recorded in transport (8.3%), housing, water supply, electricity, gas and other fuels (5.6%), recreation, sport and culture (5.3%), and food and non-alcoholic beverages (5.1%). Clothing and footwear recorded the largest annual decline, falling by 7.7%. On a monthly basis, the most significant increases were observed in housing, water supply, electricity, gas and other fuels (1.2%) and recreation, sport and culture (1.0%).
Main Sectors Impacting Annual Inflation
According to the Statistical Service, the largest positive contributions to annual inflation came from restaurants and accommodation services, recreation, sport and culture, and alcoholic beverages and tobacco. The largest negative contributions came from health, information and communication, and clothing and footwear.
Specific Product and Service Trends
At the level of individual products and services, recreational services made the strongest positive contribution to annual inflation, followed by catering services and rents. In contrast, mobile communication services, insurance, and pharmaceutical and health products recorded the largest negative contributions. Compared with May, electricity had the strongest positive impact on the monthly change in the CPI, while vegetables had the largest negative impact, followed by fuels and lubricants.
