Cyprus recorded the lowest inflation rate among all European Union countries in May, according to figures released by Eurostat this week.

Inflation in Cyprus fell to just 0.4 per cent in May 2025, down from 1.4 per cent in April and 3 per cent in May 2024.

The annual inflation rate in the eurozone decreased to 1.9 per cent in May 2025, from 2.2 per cent in April. One year earlier, the rate stood at 2.6 per cent.

In the European Union as a whole, annual inflation dropped to 2.2 per cent in May 2025, compared to 2.4 per cent in April. A year earlier, EU inflation had reached 2.7 per cent.

The lowest annual inflation rates were observed in Cyprus at 0.4 per cent, in France at 0.6 per cent, and in Ireland at 1.4 per cent.

Conversely, the highest annual rates were recorded in Romania at 5.4 per cent, in Estonia at 4.6 per cent, and in Hungary at 4.5 per cent.

Compared to April 2025, annual inflation decreased in fourteen member states, remained stable in one, and increased in twelve.

In May 2025, the largest contribution to the annual inflation rate in the eurozone came from services, which added 1.47 percentage points.

This was followed by food, alcohol and tobacco with 0.62 percentage points, non-energy industrial goods with 0.16 percentage points, while energy contributed negatively with minus 0.34 percentage points.