Nicosia, 1 September 2026 – Inflation in Cyprus accelerated again in August. According to a flash estimate published by Eurostat on Tuesday, consumer prices were 5.2 percent above the level of the same month last year. This is the fourth month in a row that the inflation rate rose and is now well above the Eurozone.Fourth

consecutive increase

In May, the inflation rate measured according to the harmonized index of consumer prices was 3.5 percent. In June it rose to 4.1 percent, in July to 4.4 percent and in August to an estimated 5.2 percent.

The increase was also strong compared to the previous month: Between July and August, prices in Cyprus rose by 1.5 percent, according to flash estimates. In August 2025, the annual rate was still zero percent.

Cyprus well above the eurozone average

For the eurozone as a whole, Eurostat estimates inflation at 3.3 percent in August, after 2.9 percent in July. Cyprus is thus 1.9 percentage points above the currency area average.

Energy prices are considered the most important driver in the euro area. Their annual rate of increase increased from 10.3 percent in July to 14.3 percent in August. Services rose by 3.0 percent, while food, alcohol and tobacco together rose by 1.2 percent.

For Cyprus, the flash estimate does not yet contain a complete breakdown by product group. The extent to which energy, food, rents or services have contributed to the national rate will therefore only become clearer with the detailed data.

Persistently high inflation is a particular burden on low- and middle-income households because a larger part of their budget is needed for energy, mobility and food. Companies also come under pressure when transport, electricity and financing costs rise.

At the same time, the development is likely to intensify the discussion about government relief. The government has already announced that it will continue the existing reduction in excise duty on fuels for the time being. Whether further measures will follow depends, among other things, on energy prices and the duration of the inflation surge.

Flash estimate can still be adjusted

The published figures are provisional. Eurostat will present detailed and final inflation data later. Only then will it be possible to assess more precisely which areas have had a particularly strong impact on price developments in Cyprus.