Inflation, as measured by the harmonised index of consumer prices in Cyprus (HICP), has climbed to a six-month peak in May 2024, increasing by 3 per cent compared to the same month in 2023.

This significant rise, outlined by Cyprus Statistical Service (Cystat), marks the highest increase since November 2023, further intensifying by 1.2 per cent on a month-on-month basis.

Despite this acceleration in May, it’s noteworthy that the overall harmonised inflation rate from January to May 2024 has remained relatively restrained.

Indeed, the year-on-year increase of 2.2 per cent hovers close to the European Central Bank’s target of approximately 2 per cent.

Examining deeper into specific categories, restaurants and hotels alongside transport have registered the most substantial annual increases.

Restaurants and hotels soared by 6.1 per cent, while transport escalated by 5.6 per cent compared to May 2023.

On a monthly comparison with April 2024, the restaurants and hotels category again led with a notable increase of 2.4 per cent.

Further analysis from January to May 2024 reveals that the restaurant and hotels category has consistently experienced increased inflation, with an overall rise of 5.8 per cent compared to the same period last year.

Among all the economic categories reviewed, the energy sector experienced the largest annual upswing in May 2024, with prices surging by 7.2 per cent.

This increase starkly contrasts with the previous month’s figures, where the services category saw the most significant month-on-month rise of 1.7 per cent.