Cyprus recorded its first negative annual inflation rate in over four years, with consumer prices falling 0.2% in May 2025 compared to the same month in 2024, according to data released by the Cyprus Statistical Service.
The negative reading marked the first deflationary period since March 2021, when the country began experiencing sustained price increases that peaked during the global inflation surge of 2022.
Despite the overall decline, consumer prices rose 0.22% from April to May 2025, indicating continued month-on-month pressure in certain sectors.
Energy sector drives deflation
The energy sector recorded the largest price decline, falling 12.83% annually in May. Electricity costs dropped 8.55%, while industrial products excluding petroleum fell 0.89%.
Fuel prices showed significant decreases, with petroleum down 11.68% and petrol declining 14.49% compared to May 2024.
Transport costs fell 6.60% annually, while clothing and footwear prices decreased 1.53%. Furniture, household equipment and cleaning products declined 0.45%.
Food prices maintain upward pressure
Food and non-alcoholic beverages continued rising, recording a 1.98% annual increase in May. Agricultural products showed stronger price growth at 4.72%.
Potatoes led food price increases at 16.83%, followed by fresh fruit at 12.23%. Meat prices rose across categories, with lamb and goat meat up 8.90%, beef and veal increasing 8.59%, and pork rising 5.77%. Fresh low-fat milk prices climbed 5.92%.
Olive oil and sugar recorded the largest food price declines, falling 20.04% and 18.99% respectively.
Alcoholic beverages and tobacco increased 0.93% annually, while restaurant and hotel prices rose 4.91%.
Historical context
May 2025’s negative inflation contrasts sharply with recent years. Annual inflation reached 2.7% in May 2024 and 3.0% in May 2023. The rate peaked at 9.1% in May 2022 during the global inflation surge.
Cyprus previously experienced sustained deflation from 2013 to 2016, with May readings of -0.7%, -1.4%, -2.0% and -2.1% respectively.
The Statistical Service data confirms declining inflationary pressures across the economy, though certain food categories and services continue experiencing price increases at reduced rates compared to previous months.
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