Consumer prices in Cyprus fell by 0.4 per cent in June 2025, when compared to the same month last year, according to data released by the state statistical service on Thursday.

The Consumer Price Index (CPI) decreased by 0.29 points in June to reach 117.28 units, down from 117.57 in May.

The drop in inflation marks a notable shift after months of price increases and reflects a combination of sector-specific declines and seasonal factors.

The largest year-on-year decrease was recorded in electricity, which fell by 10.3 per cent, followed by petroleum products, which declined by 9.2 per cent.

Agricultural products also contributed to the drop in prices, registering a 4.8 per cent decline compared with May 2025.

By contrast, the services sector saw the most significant annual increase, rising by 3.9 per cent.

Looking at specific categories, restaurants and hotels rose by 5.5 per cent compared with June 2024, while recreation and culture increased by 5.1 per cent.

Moreover, clothing and footwear saw the sharpest drop among categories, falling by 5.2 per cent year-on-year.

Between May and June 2025, the most notable price declines were recorded in food and non-alcoholic beverages, which dropped by 2.3 per cent.

In the same period, restaurants and hotels saw a monthly increase of 1.1 per cent.

Catering services were the single largest contributor to upward pressure on the index over the year, adding 0.60 index points, while petroleum products had the biggest negative effect, lowering the CPI by 1.01 points.

Electricity followed closely behind with a negative impact of 0.58 points.

Furthermore, when compared with the previous month, the largest negative effect came from fresh vegetables, which reduced the index by 0.32 points, followed by fresh fruit and potatoes.

On the upside, catering services continued to exert positive pressure, contributing 0.11 index points.

For the first half of the year, from January to June 2025, the general CPI rose by 0.91 per cent compared with the same period in 2024.

Over that six-month period, the most significant category increases were seen in restaurants and hotels (4.7 per cent), education (3.7 per cent), and recreation and culture (3.3 per cent).

Clothing and footwear declined the most over the first half of the year, falling by 5.6 per cent.

The overall inflation trend remains uneven across economic sectors, with deflation in key essentials such as food and energy offsetting inflationary pressures in services and hospitality.

The CPI, which is based on a 2015 index value of 100, is calculated monthly using data collected in urban areas of Nicosia, Limassol, Larnaca and Paphos.

The weights used to calculate the index reflect the relative population distribution of these districts, with Nicosia accounting for 42 per cent of the total.

The statistical service pointed out that prices are collected for 805 goods and services, with more frequent monitoring of seasonal products and fuel.