The annual inflation rate in both Cyprus and the eurozone fell to 2.2% in August 2024, down from 2.4% and 2.6%, respectively, in July, according to data released by Eurostat, the European Union's statistical office. Similarly, the annual inflation rate across the EU dropped to 2.4% in August, compared to 2.8% in July.

This decline also marks a significant drop compared to August 2023, when inflation was 3.1% in Cyprus, 5.2% in the eurozone, and 5.9% in the EU.

The lowest annual inflation rates in August 2024 were recorded in Lithuania (0.8%), Latvia (0.9%), and both Ireland and Finland (1.1%).

On the other hand, the highest inflation rates were reported in Romania (5.3%), Belgium (4.3%), and Poland (4.0%).

Compared to July 2024, annual inflation decreased in 20 member states, remained stable in one, and increased in six.

In August 2024, services contributed the most to the annual inflation rate in the eurozone (+1.88 percentage points), followed by food, alcohol, and tobacco (+0.46 points), non-energy industrial goods (+0.11 points), and energy, which had a negative impact (-0.29 points).