Cyprus retail posts strong summer performance despite inflation

Nicosia, Cyprus. Cyprus consumers are visiting supermarkets more frequently, comparing prices across stores and avoiding unnecessary purchases, while the retail market has maintained strong summer performance despite inflationary pressure.

Inflation trends

The Harmonised Index of Consumer Prices rose by 4.4 per cent year-on-year in July and by 0.7 per cent from June, according to the statistical service Cystat.

Food and non-alcoholic beverages were 4.54 per cent more expensive than a year earlier, while housing and electricity costs increased by 6.98 per cent.

The largest increase, 11.95 per cent, was recorded in restaurants and accommodation services. Clothing and footwear prices declined by 5.24 per cent.

Consumer behaviour and retail activity

Pasyle secretary-general Marios Antoniou and supermarkets association executive secretary Andreas Hadjiadamou told the Cyprus News Agency that consumers had become more selective, seeking offers and limiting unnecessary purchases.

Antoniou said retail activity remained healthy despite inflation and pressure on household purchasing power, with footfall and turnover at very strong levels.

He said figures for the first eight months provided a representative indication of retail trade performance across 2026. July and August performed particularly well across the sector in both customer traffic and turnover.