Cyprus's annual inflation rate climbed to 3.5% in August, the fifth consecutive monthly rise since the outbreak of war in the Middle East, according to the Consumer Price Observatory of the Consumer Protection Service. The increase was driven mainly by a 20.3% jump in petroleum product prices and a 6.0% rise in electricity and water costs. Forty of the 45 product categories tracked by the Observatory registered higher prices than in August 2025.
The monthly inflation trend
The annual inflation rate has risen steadily over recent months:
- +2.8% in April,
- +2.5% in May,
- +3.1% in June,
- +2.9% in July and
- +3.5% in August.
The Statistical Service attributes the sustained upward pressure largely to energy costs, which have climbed sharply since the start of the conflict in the Middle East five months ago.
What moved in August
Compared with the previous month, 19 categories recorded price increases, 25 recorded decreases and one remained unchanged. However, when measured against August 2025, 40 of the 45 categories showed higher prices, underlining the broader annual trend even where monthly movements pulled in different directions.
Biggest monthly increases
The sharpest monthly rises were recorded in
- cooking stock, up 3.7% (+11.3% year-on-year);
- fresh vegetables and greens, up 3.2% (+1.0% year-on-year);
- grilling charcoal, up 2.9% (+9.1% year-on-year);
- sugar, up 1.9% (-2.1% year-on-year);
- bulgur, up 1.4% (+4.7% year-on-year); and
- cheese, up 1.4% (+3.2% year-on-year).
Biggest monthly decreases
The largest monthly falls were seen in
- frozen molluscs and shellfish, down 11.9% (+2.0% year-on-year);
- fresh fish and molluscs, down 4.9% (+6.1% year-on-year);
- laundry detergents, down 4.8% (-2.2% year-on-year);
- breaded and pre-cooked frozen fish, down 3.9% (-18.4% year-on-year); and
- frozen fish, down 2.9% (+4.3% year-on-year).
The Price Observatory monitors the weighted average price of 250 basic consumer products across 45 categories, covering food and other goods, based on quantities and prices recorded daily at 400 retail outlets across Cyprus, including supermarkets, bakeries and kiosks, throughout the month.
Consumer guidance
The Consumer Protection Service noted that some products included in the Observatory may have quality differences that cannot be standardised, and it urged consumers to carry out proper market research before making purchases, taking the Observatory's findings into account. Detailed data is available on the Consumer Protection Service's website, and the Service encouraged consumers to use the platform www.e-kalathi.gov.cy and its accompanying mobile application to make more informed and cost-effective purchasing decisions.
