Inflation at 1.6% in March 2025, continuing its downward trend

Inflation in March 2025 stood at 1.6%, according to the latest Consumer Price Index (CPI) data released by CySTAT. The index increased to 117.25 points from 117.11 points in February, recording a monthly rise of 0.12%.

The data indicate a continuation of the downward trend in inflation, which had reached 1.9% in February and 2.48% in January 2025.

Significant changes

The most notable change among economic categories, compared to March 2024 and the previous month, was recorded in Agricultural Products, with an annual increase of 6.6% and a monthly decline of 2.4%.

On an annual basis, the largest price increases were observed in Restaurants and Hotels (+5.1%), Housing, Water, Electricity, and Gas (+4.2%), and Education (+3.7%). In contrast, Clothing and Footwear recorded a 7.8% decrease, negatively impacting the overall index.

On a monthly basis, prices in Clothing and Footwear increased by 2.8%, while Food and Non-Alcoholic Beverages declined by 1.17%, exerting downward pressure on the index.

Compared to March 2024, the most significant changes were seen in Clothing and Footwear (-7.8%), Restaurants and Hotels (5.1%), Housing, Water, Electricity, and Gas (4.2%), and Education (3.7%).

Compared to February 2025, the largest change was recorded in the Clothing and Footwear category, which rose by 2.8%.

Factors driving inflation

The most significant positive impact on the CPI came from Catering Services (+0.53 points) and Electricity (+0.29 points), while the most significant negative impact was recorded in Clothing Items (-0.40 points).

The monthly increase in the CPI was positively influenced by Catering Services (+0.19 points) and Clothing Items (+0.12 points), whereas Fresh Vegetables (-0.35 points) and Petroleum Products (-0.14 points) had a negative impact.

(Source: CNA)