Cyprus’ Harmonised Index of Consumer Prices (HICP) fell by 0.9 per cent year-on-year in July 2025, according to data released by the statistical service (Cystat) on Thursday.

Compared with the previous month, consumer prices dropped by 0.5 per cent, with the index declining to 116.65 points from 117.28 in June. 

Among the main economic groups, the largest annual increase was recorded in services, which rose by 3.7 per cent.  

At the same time, electricity and petroleum products posted the steepest declines, falling by 12.2 per cent and 8.1 per cent respectively. 

Clothing and footwear registered the sharpest drop, down by 7.3 per cent.  

In contrast, restaurants and hotels rose by 5 per cent, followed by a 4.1 per cent increase in recreation and culture.  

Education also rose, climbing by 3.9 per cent year-on-year, while food and non-alcoholic beverages fell by 3 per cent. 

On a monthly basis, clothing and footwear dropped significantly, by 12.4 per cent. Transport increased by 2.1 per cent, while more moderate gains were recorded in recreation and culture, which rose by 0.9 per cent, and in restaurants and hotels, which rose by 0.3 per cent.  

Food and non-alcoholic beverages, however, declined by 0.4 per cent. 

During the first seven months of 2025, compared with the same period last year, prices for clothing and footwear fell by 5.8 per cent.  

At the same time, restaurants and hotels rose by 4.8 per cent, education by 3.8 per cent, and recreation and culture by 3.4 per cent.  

On the contrary, transport was down by 1.5 per cent, while furnishings, household equipment and routine maintenance recorded a 0.7 per cent decline. 

In terms of impact on the index, restaurants and hotels made the largest positive contribution, adding 0.54 points.  

Recreation and culture followed, contributing 0.27 points. By contrast, food and non-alcoholic beverages exerted the greatest downward pressure, subtracting 0.72 points. 

Petroleum products reduced the index by 0.94 points, followed by electricity, which lowered it by 0.70 points. Catering services added 0.57 points, while repair and maintenance services added another 0.18. 

When comparing July with June, clothing items had the strongest negative impact, pushing the index down by 0.71 points.  

This was followed by footwear, which subtracted 0.21 points, and fresh fruit, which lowered the index by 0.11 points.

On the upside, petroleum products added 0.16 points, while airfares and fresh vegetables contributed 0.12 and 0.03 points respectively.

The data is based on a representative basket of 805 goods and services.  

Price collection takes place across urban areas in Nicosia, Limassol, Larnaca and Paphos, with weightings based on population.

Nicosia accounts for 42 per cent of the total, Limassol 30 per cent, Larnaca 18 per cent and Paphos 10 per cent.

Most prices are recorded once a month, though for items that change frequently, such as fresh fruit, vegetables, meat and fuel,  prices are gathered weekly, every Thursday.