Inflation in Cyprus for March stood at 1.6 per cent, according to the latest Consumer Price Index (CPI) data released this week by the Cyprus Statistical Service.

The index rose to 117.25 points from 117.11 points in February, recording a monthly increase of 0.12 per cent.

The figures indicate a continuation of the downward trend in inflation, which stood at 1.9 per cent in February and 2.48 per cent in January 2025.

The most significant changes in economic categories compared to March 2024 and the previous month were observed in agricultural products, which recorded an annual increase of 6.6 per cent but a monthly decline of 2.4 per cent.

On an annual basis, the highest increases were registered in restaurants and hotels, which rose by 5.1 per cent, followed by housing, water, electricity and liquefied petroleum gas at 4.2 per cent, and education at 3.7 per cent.

Conversely, clothing and footwear experienced a sharp decline of 7.8 per cent, exerting a downward influence on the overall index.

On a monthly basis, clothing and footwear prices increased by 2.8 per cent, whereas food and non-alcoholic beverages recorded a decline of 1.17 per cent, negatively affecting the index.

Comparing March 2024 to March 2025, the most notable variations were seen in clothing and footwear, which fell by 7.8 per cent, while restaurants and hotels increased by 5.1 per cent, housing, water, electricity and liquefied petroleum gas rose by 4.2 per cent, and education climbed by 3.7 per cent.

When compared to February 2025, the most significant monthly change was in clothing and footwear, which saw a 2.8 per cent increase.

The primary drivers of inflation were catering services, which contributed positively by 0.53 points, and electricity, which added 0.29 points to the index.

On the other hand, the most substantial negative impact was recorded in clothing, which reduced the index by 0.40 points.

The monthly increase in the CPI was positively influenced by catering services, contributing 0.19 points, and clothing, which added 0.12 points.

However, fresh vegetables exerted a negative influence, reducing the index by 0.35 points, along with petroleum products, which subtracted 0.14 points.