According to the latest flash estimates released by Eurostat, the European Union's statistical office, Cyprus is set to experience a decrease in its annual inflation rate. The rate, which stood at 4.3% in September 2023, is expected to drop to 3.3% in October 2023.

This anticipated decline is part of a broader trend observed across the Eurozone. The region's overall annual inflation rate is projected to fall from 4.3% in September to 2.9% in October, based on the same Eurostat estimates.

The primary contributors to the Eurozone's inflation in October are expected to be the food, alcohol, and tobacco sectors, albeit at a reduced pace. This category is forecasted to see a price growth rate of 7.5%, down from 8.8% in September. Service sector inflation is likely to follow, showing a slight decrease from 4.7% to 4.6%. Industrial goods, excluding energy, are also expected to see a price increase slowdown from 4.1% to 3.5%.

In a notable development, the energy sector is projected to record a substantial decrease in its inflation rate. The rate is expected to stand at -11.1% in October, compared to -4.6% in September, indicating a significant easing of price pressures in this vital sector.