Nicosia, Cyprus. Cyprus’ annual inflation rate stood at 1.2% in January 2026, remaining below the euro area and EU averages as price pressures across the bloc continued to ease, according to Cystat and Eurostat. The Harmonised Index of Consumer Prices (HICP) fell by 0.3% month-on-month.
Annual inflation and category changes
The HICP decelerated to 1.2% compared with January 2025, when it stood at 2.9%.
On an annual basis, the strongest increases were in recreation, sports and culture, up 5.8%, followed by restaurants and accommodation services, up 4.8%, and educational services, up 3.4%.
Food and non-alcoholic beverages rose by 3.2%, alcoholic beverages and tobacco by 0.9%, health by 0.5%, and personal care and miscellaneous goods by 1.2%.
Clothing and footwear fell by 6.2%, the steepest decline. Housing, water, electricity and gas decreased by 2.5%, transport by 0.5%, and information and communication by 2.9%.
Monthly changes
On a monthly basis, clothing and footwear dropped by 12.1%, while food and non-alcoholic beverages increased by 3.7% compared with December.
Economic origin and basket weights
By economic origin, energy declined by 6.5% year-on-year and by 1.2% month-on-month.
Services increased by 4.3% annually, while non-energy industrial goods fell by 2.8% year-on-year and 3.7% month-on-month.
Services account for nearly half of the basket, with a weight of 482.81 out of 1,000, compared with 223.72 for non-energy industrial goods and 88.45 for energy.
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