Cyprus recorded deflation for a third consecutive month in July, with the Consumer Price Index (CPI) registering an annual decrease of 0.9% — the largest year-on-year drop in nearly three years.
According to the Statistical Service, the index fell to 116.65 units, marking a monthly decline of 0.63 units compared to June 2025, when it stood at 117.28 units.
The most notable annual increase among economic categories was recorded in Services, which rose by 3.7%. In contrast, the largest annual declines were observed in Electricity, down by 12.2%, and Petroleum Products, which dropped by 8.1%. On a monthly basis, the biggest decline was recorded in Industrial Goods excluding petroleum products, which fell by 2.0%, compared to June.
Compared to July 2024, the sharpest percentage changes were seen in Clothing and Footwear, which dropped by 7.3%, Restaurants and Hotels, which increased by 5.0%, and Recreation and Culture, which rose by 4.1%. On a monthly basis, the biggest changes were again in Clothing and Footwear, which declined by 12.4%, and Transport, which increased by 2.1%.
For the period January to July 2025, in comparison with the same period of the previous year, the most significant changes were in Clothing and Footwear, which decreased by 5.8%, followed by increases in Restaurants and Hotels at 4.8% and Education at 3.8%.
In terms of impact on the overall index, the largest positive annual contributions to the CPI change came from Restaurants and Hotels (0.54 index points) and Recreation and Culture (0.27), while the most significant negative contribution was from Food and Non-Alcoholic Beverages, which subtracted 0.72 points from the index.
The largest negative monthly impact came from Clothing and Footwear, which reduced the index by 0.92 points compared to June. On an annual basis, Catering Services had the most substantial positive effect, adding 0.57 index points, while Petroleum Products had the strongest negative effect, subtracting 0.94 points.
Compared to June 2025, Petroleum Products made the biggest positive contribution to the CPI in July (0.16 points), while Clothing Items had the most significant negative impact, reducing the index by 0.71 points.
(Source: CNA)
