For the first time since 2021, Cyprus has entered into deflation.
The Statistical Service of Cyprus has revealed that the island nation’s yearly rate of inflation has gone down to the negatives up to -0.2%, This previously happened in 2021, when the Consumer Price Index (CPI) went on a year-on-year decrease to stand at -0.72% inflation.
While the CPI did slightly increase in May 2025 – going up of 117.57 units instead of April 2025’s 117.31 – the prices were much lower than that of the same time in 2024.
Prices increased the most for services (by 3.5%) and agro products (by 4.7%), where is they decreased for things utilities such as power (by 8.6%) and gas (by 12.8%). The latter especially played a major role in making said deflation happen.
Footwear and clothing saw a decline of 5.3% in prices, whereas transport was a 6.6% decrease. Meanwhile the prices of education, restaurant & recreation increased by 3.7%, 4.9% and 4.0% respectively.
Speaking of month-on-month increase, footwear and clothing increased the most (by 2.4%), whereas transport reduced by -2.4%.
The lowered cost of gas and transport is believed to have contributed to the deflation, despite the pressure exerted by the rising costs of food & beverages and hotels & restaurants.
