The annual inflation rate in Cyprus stood at 2.9% in January 2025, down from 3.1% in December 2024, according to data released by Eurostat, the European Union’s statistical office. A year earlier, in January 2024, Cyprus had recorded a lower annual inflation rate of 2.1%.

Meanwhile, inflation across Europe remained relatively stable, with the eurozone recording a slight increase to 2.5% from 2.4% in December, and the EU registering a rise to 2.8% from 2.7% compared last month. One year ago, in January 2024, inflation in the eurozone stood at 2.8% and in the EU at 3.1%.

Among EU member states, the lowest annual inflation rates in January 2025 were recorded in Denmark (1.4%), Ireland (1.7%), Italy (1.7%), and Finland (1.7%). On the other hand, Hungary (5.7%), Romania (5.3%), and Croatia (5.0%) reported the highest inflation rates.

Compared to December 2024, annual inflation decreased in eight member states, remained unchanged in four, and increased in fifteen.

In January 2025, the biggest contributor to annual inflation in the eurozone was the services sector, adding 1.77 percentage points. This was followed by food, alcohol, and tobacco (+0.45 percentage points), energy (+0.18 percentage points), and non-energy industrial goods (+0.12 percentage points).