Cyprus recorded zero annual inflation in September 2025, making it the only country in the euro area with no change in consumer prices compared with the same month last year, according to preliminary figures from Eurostat.

The figures show that while the eurozone as a whole experienced an annual inflation rate of 2.2 per cent, up from 2.0 per cent in August, Cyprus stood out with complete price stability on a yearly basis.

The monthly picture for Cyprus was also noteworthy, with consumer prices declining by 0.4 per cent compared with August.

This development contrasts with the overall trajectory across the euro area, where price increases in services and food continue to put upward pressure on inflation.

In Cyprus, the stability is believed to reflect both domestic and external factors, including relatively stable energy and food prices as well as lower import costs.

Across the eurozone, services recorded the highest annual inflation rate in September at 3.2 per cent, compared with 3.1 per cent in August.

Food, alcohol and tobacco followed with an annual increase of 3.0 per cent, down slightly from 3.2 per cent in August.

Non-energy industrial goods saw an annual increase of just 0.8 per cent, highlighting weak demand in specific sectors, while energy prices continued to exert downward pressure, recording a decline of 0.4 per cent in September.

The energy fall, however, was less steep than in August, when prices had dropped by 2.0 per cent.

What is more, significant differences remain between member states.

Estonia posted the highest annual inflation at 5.2 per cent, followed by Croatia and Slovakia, both at 4.6 per cent.

At the lower end, France recorded an annual rate of 1.1 per cent and Italy 1.8 per cent.

Meanwhile, Greece registered a sharp drop in inflation, falling from 3.1 per cent in August to 1.8 per cent in September, largely due to falling energy and food prices.

Other member states showed relative stability, with Ireland posting an inflation rate of 2.7 per cent and Spain 3.0 per cent.