Philenews

Cyprus Records Eighth Month of Deflation

Published January 8, 2026, 12:23
Cyprus Records Eighth Month of Deflation

Cyprus experienced deflation for the eighth consecutive month in December 2025, with the Consumer Price Index (CPI) decreasing by 0.5% year-on-year. However, for the entirety of 2025, the CPI showed a marginal increase of 0.1% compared to 2024, indicating price stabilization. On a monthly basis, the CPI rose by 0.10 units in December, reaching 117.67 units. The largest positive changes were recorded in Services (+3.1%), while the most significant negative changes concerned Electricity (-9.4%) and Agricultural Products (-5.8%). Notable fluctuations were observed in specific categories, with Clothing and Footwear recording a substantial decline (-7.9% annually), while Restaurants and Hotels saw an increase (+4.9%). Education also rose (+3.5%) and Food and Non-Alcoholic Beverages decreased (-2.9%). Overall, Restaurants and Hotels, Education, and Recreation and Culture had the greatest positive impact on the CPI in December, while Food and Clothing and Footwear had the greatest negative impact. This development shows a differentiated picture of prices across sectors, with some being more affected by deflation and others showing increases.