FX.co ★ Cyprus Inflation Accelerates to 3-Year High

Cyprus’s annual inflation rate climbed to 3.52% in August 2026, up from 2.93% in July, marking the sharpest increase since September 2023. The acceleration was driven mainly by faster price growth in transportation (11.36% vs 5.96% in July), restaurants and hotels (3.42% vs 3.08%), and miscellaneous goods and services (0.68% vs 0.32%).

At the same time, inflation was unchanged in education (3.52%) and in insurance and financial services (0.03%). Price declines eased for information and communication (-2.72% vs -3.26%) and for furnishings and household equipment (-0.84% vs -0.98%).

By contrast, inflation slowed in several key categories, including food and non-alcoholic beverages (3.81% vs 4.94%), alcoholic beverages and tobacco (0.88% vs 0.98%), housing and utilities (6.86% vs 7.21%), health (1.03% vs 1.11%), and recreation and culture (3.23% vs 3.56%).

On a monthly basis, consumer prices rose 0.91% in August, rebounding from a 0.66% decline in July.