Annual inflation in Cyprus in August 2026 is estimated at 5.2%, up from 4.4% in July. This is the second-highest rate in the eurozone — only Lithuania is higher, with an index of 5.8%. These figures come from a preliminary estimate by Eurostat published on Tuesday. This is reported by the newspaper Phileleftheros.
In just one month, prices rose by 1.5%. Bulgaria closes the top three with 5.1%, followed by Spain at 4.5% and Belgium at 4.2%. At the other end are Estonia with 1.3%, Malta with 1.9%, France with 2.7%, the Netherlands with 2.8% and Austria with 2.9%.
A year ago there was no inflation in Cyprus at all
The figures show a sharp acceleration. In August 2025, annual inflation on the island stood at zero. By March 2026 it had risen to 1.5%, in April it reached 3%, in May 3.5%, and in June 4.1%. July gave 4.4%, August — 5.2%.
Cyprus was among the three eurozone countries with the strongest acceleration compared with July: together with it in this group are Belgium and Luxembourg. Finland was the only country where the figure declined, while in Slovakia it remained unchanged.
What is driving prices up?
Across the eurozone as a whole, annual inflation in August is estimated at 3.3%, up from 2.9% a month earlier. The main source of pressure is energy: its annual growth accelerated from 10.3% to 14.3%.
The other components behaved more calmly. Services rose by 3% year-on-year, compared with 3.3% in July. Industrial goods excluding energy increased by 1.2% versus 0.9%. Food, alcohol and tobacco grew by the same 1.2% as a month earlier. Core inflation in the eurozone, which excludes volatile food and fuel prices, even fell — from 2.5% to 2.4%.
In other words, the acceleration is almost entirely driven by the energy line. For Cyprus this is especially sensitive: the island imports finished petroleum products, and the escalation in the Middle East has brought oil back to $90 per barrel. On the same Tuesday, the Ministry of Finance informed the parliamentary energy committee that it is preparing an extension of the reduced fuel excise duty, which expires on 17 September.
Central Bank forecast almost doubled
The March macroeconomic forecast of the Central Bank of Cyprus assumed inflation for 2026 as a whole at 2.7%. Eurostat’s August estimate is almost twice that level — even though it is a monthly figure expressed in annual terms, not the year-end result.
Eurostat data are preliminary: the final figures for the Harmonised Index of Consumer Prices are published by the Statistical Service of Cyprus and may adjust the estimate. The next point at which the August figures will be taken into account at European level is the European Central Bank meeting on 10 September.
https://lenta.cy/infljacija-na-kipre-vzletela-do-5-2-vtoraja-v-evrozone/
