Inflation in Cyprus slowed to 0.9% in February, down from 1.2% in January, according to data released on Wednesday by Eurostat.
The figure marked the second lowest inflation rate in the European Union, prior to the war in the Middle East, which is expected to trigger renewed inflationary pressures.
Sectoral trends
According to additional data published by the Cyprus Statistical Service, the largest annual increases compared to February 2025 were recorded in:
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recreation, sport and culture (+5.4%)
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restaurants and accommodation services (+4.9%)
The largest decreases were observed in:
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clothing and footwear (-6.2%)
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housing, water, electricity, gas and other fuels (-3.5%)
On a monthly basis compared to January 2026, the most notable changes were:
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clothing and footwear (+0.8%)
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housing and utilities (-0.5%)
Energy and services
By economic category, the largest annual changes compared to February 2025 were:
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energy (-8.4%)
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services (+4.2%)
Compared to the previous month, the most significant movement was again in energy (-0.9%).
Eurozone and EU comparison
Across the eurozone, annual inflation rose to 1.9% in February 2026, up from 1.7% in January. A year earlier, it stood at 2.3%.
Across the EU, inflation reached 2.1% in February, compared to 2.0% in January, and 2.7% a year earlier.
The lowest annual rates were recorded in Denmark (0.5%), Cyprus (0.9%) and the Czech Republic (1.0%), while the highest were seen in Romania (8.3%), Slovakia (4.0%) and Croatia (3.9%).
Compared with January 2026, annual inflation decreased in eleven member states, remained stable in four, and increased in twelve.
Drivers of inflation
In February 2026, the main contributors to eurozone inflation were:
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services (+1.54 percentage points)
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food, alcohol and tobacco (+0.48 percentage points)
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non-energy industrial goods (+0.17 percentage points)
Energy contributed negatively (-0.30 percentage points), helping to moderate overall inflation levels.