Cyprus records first deflation in over four years in May

07:57 - 06 June 2025

Economy

Cyprus recorded deflation in May 2025 for the first time in more than four years, with the annual inflation rate turning negative at -0.2%, according to data released by CySTAT. The last time the Consumer Price Index (CPI) recorded a year-on-year decrease was in March 2021, when inflation stood at -0.72%.

The Consumer Price Index rose slightly in May 2025, reaching 117.57 units compared to 117.31 units in April 2025—an increase of 0.26 points on a monthly basis, however, on a yearly basis, prices were down.

The most significant annual price increases were recorded in Agricultural Products (+4.7%) and Services (+3.5%), while declines were seen in Petroleum Products (-12.8%) and Electricity (-8.6%). The drop in energy prices played a key role in the deflationary trend.

The most notable annual declines were observed in Transport (-6.6%) and Clothing and Footwear (-5.3%), while notable increases were recorded in Restaurants and Hotels (+4.9%), Recreation and Culture (+4.0%), and Education (+3.7%).

On a monthly basis, compared to April 2025, the largest increases were in Clothing and Footwear (+2.4%), while Transport registered the sharpest decrease (-2.4%).

The main contributors to the annual deflation included a significant negative impact from Petroleum Products (-1.47 units) and Transport (-1.21 units). On the other hand, Restaurants and Hotels (+0.52 units) and Food and Non-Alcoholic Beverages (+0.46 units) provided upward pressure.

(Source: CNA)

Cyprus records first deflation in over four years in May

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