Industrial prices in Cyprus defy euro area drop with December increase

Industrial producer prices in Cyprus bucked the wider European trend by rising in December 2025, even as the broader euro area experienced a cooling of factory-gate inflation.

According to first estimates from Eurostat, the statistical office of the European Union, prices on the Cypriot domestic market edged up by 0.2 per cent over the month.

This slight increase follows a period of volatility for the island’s industrial sector, which saw prices fall by 0.6 per cent in November 2025 and 0.2 per cent in October 2025.

Despite the monthly fluctuation, the annual inflation rate for producers in Cyprus remained stable at 0.2 per cent in December 2025, matching the rate recorded the previous month.

The industrial producer price index for Cyprus, which uses 2021 as a base year of 100, stood at 124.5 in December 2025, a marginal rise from 124.3 in November.

In contrast, the euro area saw industrial producer prices decrease by 0.3 per cent in December 2025 compared with the previous month, while the EU recorded a 0.4 per cent drop.

These figures represent a reversal from November 2025, when producer prices grew by 0.7 per cent in the euro area and 0.8 per cent across the EU.

On an annual basis, the downward pressure was even more pronounced, with industrial prices falling by 2.1 per cent in the euro area and 1.9 per cent in the EU compared with December 2024.

The significant annual drop was primarily driven by a sharp decrease in energy costs, which plummeted by 8.8 per cent in the euro area and 7.7 per cent in the EU over the twelve-month period.

When energy is excluded from the calculation, total industry prices actually increased by 1.0 per cent in the euro area and 0.9 per cent in the EU over the same period.

For the full year of 2025, the annual average of industrial producer prices showed a modest increase of 0.3 per cent in the euro area and 0.5 per cent in the EU compared with 2024.

Monthly data by sector showed that while energy prices fell by 1.2 per cent in the euro area, prices for intermediate goods rose by 0.3 per cent.

Durable consumer goods also saw a slight monthly increase of 0.2 per cent, while prices for non-durable consumer goods slipped by 0.2 per cent in December 2025.

Across the Member States, the largest monthly decreases in factory prices were reported in Estonia, Ireland, and Denmark, with falls ranging from 1.9 per cent to 3.0 per cent.

Conversely, the highest monthly increases were observed in Bulgaria, which saw a 1.4 per cent jump, followed by Portugal at 0.5 per cent.

Looking at the full year, Luxembourg and Ireland recorded the steepest annual declines at 5.6 per cent and 4.9 per cent respectively.

Meanwhile, Bulgaria and Romania experienced the highest annual surges, with prices climbing by 9.8 per cent and 6.6 per cent respectively.