Cyprus has recorded a remarkable development in inflation, with the annual rate reaching 0% in September 2025, according to preliminary data from Eurostat. At a time when the eurozone faces moderate but steady price increases of 2.2%, Cyprus stands out as the only country with zero annual change, while monthly inflation registered a decline of -0.4%.

This contrasts with trends in other member states, where key sectors such as services (3.2%) and food (3%) continue to exert upward pressure. In Cyprus, however, price stability may reflect both domestic factors—such as stable energy and food prices—and external factors like lower import costs.

According to Eurostat’s preliminary figures, annual inflation in the eurozone stood at 2.2% in September 2025, slightly higher than August’s 2%. However, this average masks significant variations across member states and categories of goods and services, highlighting a complex economic landscape.

• Services: the main driver, up 3.2% (from 3.1% in August).

• Food, alcohol, and tobacco: up 3%.

• Energy: down -0.4%, still acting as a brake but less steep than the -2% drop in August.

• Industrial goods (excluding energy): up just 0.8%, pointing to weak demand in specific sectors.

Inflation differences among eurozone countries remain stark:

• Estonia (5.2%), Croatia (4.6%), and Slovakia (4.6%) record the highest rates.

• France (1.1%) and Italy (1.8%) are at the lower end.

• Greece shows a sharp decline, from 3.1% in August to 1.8% in September, partly due to lower energy and food prices.

• Ireland (2.7%) and Spain (3%) show signs of stabilization.

• Cyprus (0%) emerges as the only country with zero inflation, underlining the unique dynamics of its economy.