Inflation in Cyprus rose by 2.5 per cent year-on-year in January, marking a slight slowdown compared to the 2.6 per cent recorded in December.

According to the Statistical Service of Cyprus (Cystat), the consumer price index (CPI) fell by 1.58 points in January, reaching 116.73 points from 118.31 points in the previous month.

The most significant price movements were observed in agricultural products, which saw a 10.0 per cent increase compared to the same month last year but a 6.1 per cent decline from December.

Food and non-alcoholic beverages recorded an annual increase of 4.8 per cent, while the restaurants and hotels category rose by 4.1 per cent.

On a monthly basis, clothing and footwear saw the largest drop, declining by 13.0 per cent.

The categories with the greatest impact on the annual inflation rate were food and non-alcoholic beverages, contributing 1.07 points, and transport, which added 0.56 points.

In contrast, clothing and footwear had the most significant downward effect, reducing the index by 0.18 points.

On a monthly basis, the decline in clothing and footwear was also the main factor behind the overall drop in the CPI, accounting for a reduction of 1.00 points.

Among specific product categories, catering services, fresh vegetables, and meat had the largest positive impact on annual inflation, while clothing items contributed the most significant negative effect.

On a monthly basis, petroleum products had the greatest upward impact, adding 0.15 points, whereas clothing items once again exerted the most downward pressure, reducing the index by 0.71 points.