Nicosia, Cyprus. Cyprus recorded one of the lowest inflation rates in the European Union in March, with annual harmonised inflation at 1.5%, according to Eurostat and the Cyprus Statistical Service (Cystat). The rate matched the second-lowest in the EU, alongside Sweden and the Czech Republic.
Cyprus and EU comparisons
Only Denmark recorded a lower annual inflation rate, at 1.0%. Across the euro area, annual inflation reached 2.6% in March 2026, up from 1.9% in February, while in the European Union it increased to 2.8% from 2.1% the previous month.
Trends across member states
A year earlier, inflation had stood at 2.2% in the euro area and 2.5% in the EU. Eurostat reported that inflation increased in 23 member states, fell in three and remained unchanged in one compared with February 2026.
Highest inflation rates in March
The highest inflation rates in March were recorded in Romania at 9.0%, followed by Croatia at 4.6% and Lithuania at 4.4%.
Price developments in Cyprus
In Cyprus, the harmonised index of consumer prices rose by 1.49% year-on-year, according to Cystat. On a monthly basis, prices increased by 1.06% between February and March 2026.
Category changes
Cystat reported that food and non-alcoholic beverages recorded the largest annual increase at 6.5%, followed by recreation, sports and culture at 5.7%. Clothing and footwear prices fell by 5.5% year-on-year, while housing, water, electricity, natural gas and other fuels declined by 4.0%.
What changes in prices have you noticed most in your household spending?