Cyprus was the only European Union country to record zero year-on-year inflation in August 2025, according to official data published this week by Eurostat.

The country stood out at a time when the average inflation rate in the euro area was 2.0 per cent, while the European Union overall recorded 2.4 per cent.

According to Eurostat, the lowest annual inflation rates were also observed in France at 0.8 per cent and Italy at 1.6 per cent.

By contrast, the highest inflation rates were registered in Romania at 8.5 per cent, Estonia at 6.2 per cent and Croatia at 4.6 per cent.

The Eurostat data also showed that unlike other member states where prices increased, prices in Cyprus remained stable.

Across the euro area, the largest upward pressures on annual inflation came from services, contributing 1.44 percentage points, followed by food, alcohol and tobacco at 0.62 percentage points, and non-energy industrial goods at 0.18 percentage points.

Meanwhile, energy prices contributed negatively to the euro area inflation rate, with a decrease of 0.19 percentage points.

Compared with July 2025, annual inflation fell in nine EU member states, remained stable in four, and rose in fourteen.

A year earlier, the euro area annual inflation rate stood at 2.2 per cent, while EU annual inflation was 2.4 per cent, unchanged from August 2025.