Cyprus’ inflation rate rose to 3.1 per cent in June 2026, according to figures released by the statistical service (Cystat), as petroleum products and agricultural goods continued to record the sharpest annual increases. 

The Consumer Price Index (CPI) increased by 0.26 points in June, reaching 103.00 units, compared with 102.74 units in May.

The rise means that prices were 3.06 per cent higher than in June 2025, while the general index increased by 0.25 per cent compared with the previous month.

For the first six months of the year, inflation stood at 1.70 per cent compared with the same period of 2025.

Cystat said the largest annual increases by economic origin were recorded in petroleum products, which rose by 21.17 per cent, and agricultural goods, which increased by 9.01 per cent.

By contrast, industrial goods excluding petroleum products recorded the largest annual decrease, falling by 0.99 per cent.

On a monthly basis, however, the picture was different. Electricity and water recorded the largest increase compared with May, rising by 4.13 per cent, while petroleum products posted the sharpest decline, falling by 1.10 per cent.

Agricultural goods also fell by 0.78 per cent month-on-month, while services increased by 0.44 per cent and industrial goods excluding petroleum products edged up by 0.15 per cent.

In annual terms, the strongest increase among the main categories was recorded in transport, which rose by 8.26 per cent.

This was followed by housing, water, electricity, natural gas and other fuels, up by 5.60 per cent, while recreation, sports and culture increased by 5.25 per cent.

Food and non-alcoholic beverages were also up by 5.06 per cent compared with June 2025, while educational services rose by 3.71 per cent.

Restaurants and accommodation services increased by 3.24 per cent, health rose by 1.13 per cent, alcoholic beverages and tobacco were up by 0.95 per cent, and personal care, social protection and miscellaneous goods and services increased by 0.65 per cent.

At the same time, the largest annual decrease was recorded in clothing and footwear, which fell by 7.65 per cent.

Information and communication also declined by 3.99 per cent, while furnishings, home decoration, household equipment and routine home maintenance were down by 0.98 per cent.

Compared with May 2026, the largest monthly increase among the main categories was recorded in housing, water, electricity, natural gas and other fuels, which rose by 1.17 per cent.

Recreation, sports and culture increased by 0.98 per cent, restaurants and accommodation services rose by 0.81 per cent, and clothing and footwear were up by 0.50 per cent.

Information and communication rose by 0.33 per cent, while personal care, social protection and miscellaneous goods and services increased by 0.29 per cent.

However, transport fell by 0.42 per cent month-on-month, food and non-alcoholic beverages declined by 0.20 per cent, alcoholic beverages and tobacco were down by 0.09 per cent, and furnishings and home maintenance fell by 0.06 per cent.

The CPI for health rose marginally by 0.02 per cent, while educational services and insurance and financial services were unchanged from May. 

Cystat also reported that the largest positive contribution to the annual change in the CPI came from restaurants and accommodation services, which added 3.15 units.

This was followed by recreation, sports and culture, with 2.91 units, and alcoholic beverages and tobacco, with 1.86 units.

Housing, water, electricity, natural gas and other fuels also contributed 1.30 units, while transport added 0.65 units and personal care, social protection and miscellaneous goods and services added 0.48 units. 

On the contrary, the largest negative annual contribution came from health, which reduced the index by 2.62 units.

Information and communication lowered the index by 1.73 units, while clothing and footwear reduced it by 1.33 units.

Insurance and financial services had a negative effect of 0.90 units, food and non-alcoholic beverages reduced the index by 0.54 units, and furnishings and home maintenance lowered it by 0.28 units.

In month-on-month terms, the largest positive contribution came from housing, water, electricity, natural gas and other fuels, which added 0.14 units.

Restaurants and accommodation services contributed 0.09 units, recreation, sports and culture added 0.07 units, clothing and footwear contributed 0.03 units, and personal care, social protection and miscellaneous goods and services added 0.02 units.

However, transport reduced the index by 0.07 units, while food and non-alcoholic beverages lowered it by 0.04 units.

For specific goods and services, recreation services recorded the largest positive annual effect, adding 2.97 units to the CPI.

Catering services, including food and beverage services, followed with 2.76 units, while rents contributed 1.53 units.

The largest negative annual effect came from mobile communication services, which reduced the index by 1.53 units. Insurance lowered the index by 1.13 units, medicines and health products reduced it by 1.00 unit, and various other goods and services had a negative effect of 0.54 units. 

On a monthly basis, electricity had the largest positive effect among specific items, adding 0.15 units compared with May. Fruits added 0.09 units, while recreation services contributed 0.08 units.

The table also grouped various other goods and services at 0.34 units.

However, vegetables had the strongest negative monthly effect, reducing the index by 0.31 units. Fuels and lubricants lowered the index by 0.06 units, while gas reduced it by 0.03 units. 

Cystat said the CPI measures changes over time in the prices of consumer goods and services acquired, used or paid for by households.

The index covers the consumption expenditure of resident households, as well as households that intend to live in Cyprus for at least one year.

Prices are collected in the urban districts of Nicosia, Larnaca, Limassol and Paphos, with district weights of 40 per cent for Nicosia, 30 per cent for Limassol, 18 per cent for Larnaca and 12 per cent for Paphos.

The prices of 850 goods and services included in the CPI are recorded once a month, while prices for some seasonal products, meat and fuels are collected weekly.