Cyprus recorded a 2.1 per cent year-on-year increase in the Harmonised Index of Consumer Prices (HICP) in March, when compared with March 2024, according to official figures released on Thursday.

Moreover, on a monthly basis, the index rose by 0.5 per cent between February and March 2025.

The HICP, a key economic indicator used to measure changes in the prices of consumer goods and services acquired by households and tourists, reflected notable trends across several spending categories.

Over the twelve-month period, the most significant price increases were seen in the categories of recreation and culture, which rose by 7.2 per cent, and restaurants and hotels, which increased by 6.1 per cent.

In contrast, clothing and footwear registered the largest year-on-year decrease, with prices falling by 7.7 per cent.

Month-on-month, from February to March 2025, clothing and footwear prices rebounded with a 3.2 per cent rise, while restaurants and hotels continued their upward trend with a 2.7 per cent increase.

For the first quarter of the year, January to March 2025, compared to the same period in 2024, the strongest increases were again observed in recreation and culture, up by 7.3 per cent, and restaurants and hotels, up by 5.2 per cent.

Meanwhile, clothing and footwear saw a quarter-on-quarter decline of 5.1 per cent.

In terms of economic categories, the most substantial annual change was recorded in services, which rose by 4.6 per cent compared to March 2024.

Non-energy industrial goods, on the other hand, fell by 2.8 per cent over the same period.

Compared to February 2025, the services category also saw the largest monthly increase, climbing by 1.3 per cent.

The Harmonised Index of Consumer Prices is constructed to track price movements over time for a wide range of goods and services consumed by both residents and tourists within the country’s economic territory.

It serves as a key metric for assessing inflation and economic trends across the European Union.