Cyprus records largest fall in industrial producer prices in the EU

Industrial producer prices in Cyprus recorded the largest monthly decline in the European Union in January 2026, according to Eurostat, even as prices rose across the euro area and the bloc as a whole.

According to first estimates from the statistical office of the European Union, industrial producer prices increased by 0.7 per cent in the euro area and by 0.8 per cent in the EU in January 2026 compared with December 2025.

This followed a monthly fall of 0.3 per cent in the euro area and 0.4 per cent in the EU in December 2025.

On an annual basis, compared with January 2025, industrial producer prices decreased by 2.1 per cent in the euro area and by 1.9 per cent in the EU.

Eurostat reported that Cyprus stood out for recording a monthly decrease of 0.9 per cent in January 2026, the largest drop among member states for which data were available.

The only other notable monthly declines were observed in the Czech Republic with a fall of 0.7 per cent, as well as in Germany and Slovakia, both down by 0.6 per cent.

By contrast, the highest monthly increases were recorded in Estonia at 13.7 per cent, Bulgaria at 7.1 per cent and Finland at 6.9 per cent.

In the euro area, monthly developments by main industrial grouping showed that prices increased by 1.0 per cent for intermediate goods and by 1.3 per cent for energy.

Prices also rose by 0.6 per cent for capital goods and by 0.8 per cent for durable consumer goods, while they decreased by 0.2 per cent for non-durable consumer goods.

Meanwhile, when energy was excluded, prices in total industry increased by 0.6 per cent in the euro area.

Across the EU, prices increased by 0.9 per cent for intermediate goods and by 1.5 per cent for energy.

Capital goods prices rose by 0.5 per cent and durable consumer goods by 0.8 per cent, while non-durable consumer goods declined by 0.2 per cent.

Excluding energy, prices in total industry across the EU increased by 0.5 per cent, the report added.

On an annual basis in the euro area, intermediate goods prices increased by 1.5 per cent in January 2026 compared with January 2025, while energy prices decreased sharply by 8.9 per cent.

Capital goods prices rose by 1.6 per cent, durable consumer goods by 2.2 per cent and non-durable consumer goods by 0.5 per cent.

Overall prices in total industry excluding energy increased by 1.2 per cent year-on-year in the euro area.

Within the EU, annual prices for intermediate goods increased by 1.2 per cent, while energy prices fell by 7.9 per cent.

Capital goods prices rose by 1.4 per cent, durable consumer goods by 2.0 per cent and non-durable consumer goods by 0.5 per cent.

Prices in total industry excluding energy increased by 1.1 per cent year-on-year in the EU.

Among member states, the largest annual decreases in industrial producer prices were recorded in Ireland at 6.9 per cent, Luxembourg at 5.2 per cent and Denmark at 3.5 per cent.

The highest annual increases were observed in Estonia at 11.9 per cent, Bulgaria at 11.7 per cent and Romania at 9.3 per cent.

The figures highlight diverging price pressures across the bloc, with Cyprus’ producer prices moving in the opposite direction to the overall monthly EU trend in January 2026, even as energy prices continued to play a decisive role in shaping broader price developments across Europe.