Nicosia, Cyprus. The government said on Thursday its economic policy is delivering tangible benefits for households, citing rising earnings and low inflation despite a recent spike in the inflation rate.
Government position on economic policy
Government spokesman Konstantinos Letymbiotis told reporters at the presidential palace that the government has pursued what he described as a responsible and effective economic policy aimed at stable public finances, robust growth, more jobs and gradually rising incomes.
Context: inflation and poverty risk data
Letymbiotis spoke amid reports of a sharp rise in inflation this month, while Eurostat data showed 17.1 per cent of Cypriots were at risk of poverty or social exclusion in 2025, compared with an EU average of 20.9 per cent.
Indicators cited and impact on households
Letymbiotis said the results of government policy are reflected across key indicators, adding that such indicators matter when they have a real impact on society, including job creation, salary support, increased space in family budgets and measurable improvements in households’ daily lives.
He cited statistics showing that in the fourth quarter of 2025, average earnings rose 4.9 per cent and median earnings increased 4.6 per cent. He said inflation was very low at the same time, which he said amounted to a substantive rise in purchasing power.
Inflationary pressures
Letymbiotis acknowledged inflationary pressures linked to rising global energy prices due to the conflict in the Persian Gulf.
How are rising prices affecting your household budget?