Prices in Cyprus continue to rise. In September 2025, inflation stood at 0%, and a year later the figure had climbed to 5.2%.

Cyprus now ranks third in the EU by inflation rate. Higher figures are recorded only in Lithuania — 6.1% — and Bulgaria — 5.6%. The eurozone average is 3.8%.

The Fiscal Council of Cyprus warns that the government’s current measures only temporarily restrain price growth. Cuts in fuel and electricity taxes help ease the burden on residents, but once the concessions are withdrawn, prices may receive a fresh upward push.

Fuel concessions are due to end in November 2026, and electricity support measures in March 2027.

One of the main drivers of high inflation remains expensive energy. In the Fiscal Council’s view, Cyprus needs not ongoing temporary concessions, but long-term solutions that will bring down the cost of electricity, while support is better directed to those who truly need it.

Over the year: 0% → 5.2%. The main question now is what will happen to prices after the government support measures end.

@cyprus_kipr