Cyprus records negative inflation in December as energy prices tumble

Cyprus recorded negative domestic inflation in December 2025 as consumer prices edged slightly higher month-on-month but fell on an annual basis, according to figures released by the state statistical service on Thursday.

Specifically, the consumer price index (CPI) rose by 0.10 points in December 2025 to 117.67 units, with 2015 acting as the base year set at 100 units, compared with 117.57 units in November 2025.

Despite the slight monthly increase, the annual inflation rate fell into negative territory, with prices in December 2025 standing 0.5 per cent lower than in the same month of the previous year.

Over the full period from January to December 2025, the CPI recorded a marginal annual increase of 0.1 per cent compared with the corresponding period of the previous year.

Among the main economic categories, the largest positive annual change compared with December 2024 was recorded in services, which increased by 3.1 per cent.

The largest annual declines were observed in electricity, which fell by 9.4 per cent, and agricultural products, which dropped by 5.8 per cent.

On a monthly basis, compared with November 2025, the largest increase was recorded in agricultural products at 3.0 per cent.

Looking at percentage changes compared with December 2024, the most significant movements were seen in clothing and footwear, which declined by 7.9 per cent, and restaurants and hotels, which rose by 4.9 per cent.

Further notable annual changes were recorded in education, which increased by 3.5 per cent, and food and non-alcoholic beverages, which fell by 2.9 per cent.

Compared with November 2025, the largest monthly changes were recorded in food and non-alcoholic beverages, which rose by 0.8 per cent, and transport, which declined by 0.4 per cent.

For the period January to December 2025, compared with the same period a year earlier, the largest changes were again observed in clothing and footwear, down 6.5 per cent, and restaurants and hotels, up 4.7 per cent.

Other significant annual movements over the year were recorded in education, which rose by 3.7 per cent, and recreation and culture, which increased by 3.1 per cent.

In terms of impacts measured in index units, the largest positive contributions to the change in the CPI in December 2025 compared with December 2024 came from restaurants and hotels at 0.54 units.

Additional positive impacts were recorded in education at 0.16 units and recreation and culture at 0.15 units.

The largest negative impacts on the annual change in the CPI were recorded in food and non-alcoholic beverages at minus 0.70 units and clothing and footwear at minus 0.61 units.

On a monthly basis, the biggest contribution to the change in the CPI in December 2025 compared with November 2025 came from food and non-alcoholic beverages, which added 0.19 units.

The statistical service also said the largest positive impact by individual category on the CPI compared with December 2024 was recorded in catering services at 0.53 units.

The largest negative impacts at that level were recorded in electricity, which subtracted 0.53 units, and fresh vegetables, which reduced the index by 0.51 units.

Compared with November 2025, fresh vegetables had the strongest positive impact on the CPI at 0.33 units.

The largest negative monthly impacts were recorded in airfares and electricity, each subtracting 0.06 units from the index.

These figures align with Eurostat’s preliminary estimate released on January 7, which showed Cyprus recording the lowest inflation rate in the eurozone in December at 0.1 per cent year-on-year, unchanged from November.

This contrasted with an estimated 2.0 per cent inflation rate for the euro area and higher readings in Germany at 2.8 per cent, Spain at 3.1 per cent and France at 3.7 per cent, while Italy recorded 0.7 per cent.

The statistical service explained that the consumer price index measures changes in prices over time for consumer goods and services acquired, used or paid for by households.

It added that Cyprus’ national CPI covers the consumption expenditure of resident households and households intending to live in Cyprus for at least one year, and serves as the official measure of inflation.