Inflation in Cyprus recorded a decrease of 0.2 per cent in May 2025, according to data released by the state statistical service on Thursday.

Although the Consumer Price Index (CPI) rose slightly, the rate of inflation eased, indicating that prices increased at a slower pace compared to previous periods.

Specifically, the CPI rose by 0.26 points, reaching 117.57 units compared to 117.31 units in April 2025.

Compared to May 2024, the largest increases by economic category were observed in agricultural products, which rose by 4.7 per cent, and services, which increased by 3.5 per cent.

At the same time, the steepest annual declines were seen in petroleum products, which dropped by 12.8 per cent, and electricity, which decreased by 8.6 per cent.

On a monthly basis, the most significant change from April 2025 was recorded in petroleum products, which fell by 3.3 per cent.

Looking at specific categories compared to May 2024, the biggest price increases were in restaurants and hotels, which rose by 4.9 per cent, followed by recreation and culture at 4.0 per cent and education at 3.7 per cent.

In contrast, the most notable price drops were recorded in transport, which declined by 6.6 per cent, and clothing and footwear, which fell by 5.3 per cent.

Between April and May 2025, the most significant changes were seen in clothing and footwear, which increased by 2.4 per cent, and transport, which declined by 2.4 per cent.

During the January to May 2025 period, compared with the same period in 2024, the largest fluctuations were observed in clothing and footwear, which dropped by 5.6 per cent, restaurants and hotels, which rose by 4.6 per cent, and education, which increased by 3.7 per cent.

In terms of impact by index points, the biggest positive contribution to the annual CPI change in May 2025 came from restaurants and hotels, which added 0.52 points, and food and non-alcoholic beverages, which contributed 0.46 points.

Elsewhere, transport had the largest negative contribution to the CPI change on an annual basis, reducing the index by 1.21 points.

The most significant positive contributors to the annual change in May 2025 were catering services, which added 0.53 points, and fresh fruit, which added 0.25 points.

On the other hand, petroleum products exerted the largest downward pressure, decreasing the index by 1.47 points.

When comparing May 2025 with April 2025, the transport category had the largest negative contribution, reducing the index by 0.41 points.

Moreover, fresh fruit and clothing items had the most substantial positive effects, contributing 0.22 points and 0.14 points respectively.

The largest monthly negative effect once again came from petroleum products, which reduced the index by 0.30 points.