Cyprus records lowest inflation in eurozone as prices stay flat

Euro area annual inflation is expected to reach 1.9 per cent in February 2026, up from 1.7 per cent in January, according to a flash estimate by Eurostat.

The figures indicate a modest acceleration in headline inflation across the eurozone, even as Cyprus continues to record one of the lowest rates in the bloc.

According to the data, Cyprus posted an annual inflation rate of 0.9 per cent in February 2026, placing it among the lowest in the region and reflecting a relatively flat price trajectory since late 2025.

In fact, Cyprus’ year-on-year rate of 0.9 per cent was the lowest of all member states listed in Eurostat’s harmonised index of consumer prices (HICP) table for February 2026.

Across the euro area, services are expected to register the highest annual rate in February at 3.4 per cent, compared with 3.2 per cent in January, the statistical office explained.

Food, alcohol and tobacco are forecast to record an annual increase of 2.6 per cent, unchanged from January.

Non-energy industrial goods are projected to rise by 0.7 per cent, up from 0.4 per cent the previous month.

Energy prices are expected to remain in negative territory at minus 3.2 per cent, compared with minus 4.0 per cent in January, indicating a slightly slower pace of decline.

The broader European picture shows what analysts describe as a landscape of stabilisation alongside pockets of volatility.

Among member states with particularly low inflation, France recorded an annual rate of 1.1 per cent, while Belgium stood at 1.4 per cent.

Germany, the eurozone’s largest economy, saw inflation cool to 2.0 per cent in February 2026, down from 2.6 per cent a year earlier.

Spain registered an annual rate of 2.5 per cent, while Italy came in at 1.6 per cent, suggesting that major economies are gradually returning towards more historical norms.

However, persistent higher inflation remains visible in parts of eastern Europe and the Baltics, with Slovakia recording an annual rate of 4.0 per cent.

Croatia followed closely at 3.9 per cent, while Estonia posted 3.2 per cent.

Slovenia moved against the broader downward trend, with its rate climbing to 2.8 per cent from 1.9 per cent in February 2025.

While annual rates provide the broader picture, monthly data for February 2026 reveal sharper short-term movements in certain countries.

Belgium recorded a significant month-on-month increase of 2.5 per cent, and the Netherlands followed with a rise of 1.5 per cent.

By contrast, Cyprus saw no month-on-month change between January and February, registering 0.0 per cent, while Slovakia recorded a marginal increase of 0.1 per cent.

The figures underline Cyprus’ relative price stability within the euro area, even as overall eurozone inflation edged higher at the start of 2026.