The annual inflation rate in Cyprus is projected to reach 2.3 per cent in February 2025, down from 2.9 per cent in January, according to preliminary estimates by Eurostat, the statistical office of the European Union.

This marks a further decline from December 2024, when inflation stood at 3.1 per cent.

In comparison, the annual inflation rate in February 2024 was 2.1 per cent.

Across the eurozone, inflation is expected to be 2.4 per cent in February 2025, slightly lower than the 2.5 per cent recorded in January.

In terms of inflation drivers at the eurozone level, services are expected to record the highest annual rate in February at 3.7 per cent, although slightly lower than the 3.9 per cent seen in January.

This is followed by food, alcohol, and tobacco, with an estimated inflation rate of 2.7 per cent, up from 2.3 per cent in January.

Non-energy industrial goods are projected to see an inflation rate of 0.6 per cent in February, a minor increase from 0.5 per cent in January.

Meanwhile, energy inflation is expected to drop significantly to 0.2 per cent, compared to 1.9 per cent in January.

The decline in inflation in Cyprus aligns with broader eurozone trends, suggesting a stabilisation in price increases.