The Consumer Price Index (CPI) in Cyprus increased by 0.39 points in August 2025, reaching 117.04 units compared with 116.65 units in July 2025, according to a report from the state statistical service.

Despite this rise, the statistical service said, inflation in August 2025 decreased by 0.9 per cent year-on-year.

The largest positive change in economic categories compared with August 2024 was recorded in services, which rose by 3.6 per cent.

Meanwhile, the largest negative changes were observed in electricity, down 11.6 per cent, and petroleum products, which fell by 7.3 per cent.

Compared with July 2025, the category with the most significant change was agricultural products, which increased by 4.4 per cent.

When analysed over the year, the categories showing the largest changes compared with August 2024 included clothing and footwear, which fell by 7.7 per cent, restaurants and hotels, up 4.5 per cent, and recreation and culture, up 3.9 per cent.

Compared with July 2025, the largest changes were recorded in food and non-alcoholic beverages, up 1.8 per cent, and clothing and footwear, down 1.1 per cent.

For the period January to August 2025, compared with the same period of 2024, the largest category changes were clothing and footwear, down 6.0 per cent, restaurants and hotels, up 4.7 per cent, and education, up 3.8 per cent.

Analysing the effects in units, the largest positive impact on the CPI change in August 2025 compared with August 2024 came from restaurants and hotels, which contributed 0.49 units, and recreation and culture, which added 0.26 units.

The largest negative impact over the same period came from food and non-alcoholic beverages, at -0.72 units, and transport, at -0.55 units.

Compared with July 2025, the largest impact on the CPI change was recorded in food and non-alcoholic beverages, contributing 0.41 units.

The category with the largest positive impact on CPI change in August 2025 compared with August 2024 was catering services, contributing 0.53 units, while petroleum products had the largest negative impact at -0.84 units.

For month-on-month comparisons, fresh vegetables had the largest positive impact on the CPI change in August 2025 compared with July 2025, contributing 0.31 units, while petroleum products contributed -0.06 units.

As mentioned above, although the consumer price index increased in August 2025, inflation fell by 0.9 per cent compared with the same month last year.

This happens because the CPI measures the absolute level of prices each month, while year-on-year inflation tracks how prices have changed compared with the previous year.

Prices can rise slightly month-on-month even as the overall rate of annual inflation slows.

In Cyprus, higher costs in food, services, and recreation lifted the CPI in August, but the overall increase was smaller than in August 2024, leading to a decline in inflation.