Cyprus Records Deflation for Eighth Consecutive Month in December

Annual inflation rises marginally to 0.1 percent in 2025, driven by services despite sharp falls in electricity and food prices

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Cyprus recorded deflation for the eighth consecutive month in December 2025, with the Consumer Price Index (CPI) declining by 0.5% compared with December 2024, according to data released by the Statistical Service.

For the period January–December 2025, the CPI increased by 0.1% compared with the corresponding period of the previous year.

On a monthly basis, the CPI rose by 0.10 points in December 2025, reaching 117.67 units compared with 117.57 units in November 2025.

The largest annual increase by economic category was recorded in Services (3.1%), while the sharpest declines were observed in Electricity (-9.4%) and Agricultural Products (-5.8%).

Compared with November 2025, the largest monthly increase was recorded in Agricultural Products (3%).

Analysis of percentage changes

On an annual basis, the highest increases were recorded in Restaurants and Hotels (4.9%) and Education (3.5%). The largest declines were seen in Clothing and Footwear (-7.9%) and Food and Non-Alcoholic Beverages (-2.9%).

Compared with November 2025, the most notable monthly changes were recorded in Food and Non-Alcoholic Beverages (0.8%) and Transport (-0.4%).

For the period January–December 2025, compared with the same period of the previous year, the largest increases were recorded in Restaurants and Hotels (4.7%), Education (3.7%) and Recreation and Culture (3.1%). The largest decrease was recorded in Clothing and Footwear (-6.5%).

Analysis of effects in units

The largest positive contributions to the change in the CPI in December 2025 compared with December 2024 were recorded in Restaurants and Hotels (0.54), Education (0.16) and Recreation and Culture (0.15). The largest negative contributions came from Food and Non-Alcoholic Beverages (-0.70) and Clothing and Footwear (-0.61).

The largest monthly contribution to the change in the CPI in December 2025 compared with November 2025 was recorded in Food and Non-Alcoholic Beverages (0.19).

Among sub-categories, the largest positive impact on the CPI compared with December 2024 was recorded in Catering Services (0.53), while the largest negative impacts were recorded in Electricity (-0.53) and Fresh Vegetables (-0.51).

Fresh Vegetables (0.33) had the largest positive impact on the CPI compared with November 2025, while Airfares (-0.06) and Electricity (-0.06) recorded the largest negative impacts.

 

 

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