The euro area’s annual inflation rate eased to 2.1 per cent in October 2025, marking a slight decline from September and placing Cyprus at the very bottom of the European Union’s price-growth table with an exceptionally low rate of 0.2 per cent.

According to Eurostat, the European Union’s overall annual inflation stood at 2.5 per cent in October, edging down from 2.6 per cent in September, while inflation in the euro area slipped from 2.2 per cent during the same period.

A year earlier, euro area inflation had been 2.0 per cent, and the EU rate had reached 2.3 per cent.

Eurostat, the statistical office of the European Union, confirmed these headline figures and highlighted Cyprus as the Member State with the lowest inflation rate, alongside France at 0.8 per cent and Italy at 1.3 per cent.

The highest rates were recorded in Romania at 8.4 per cent, Estonia at 4.5 per cent and Latvia at 4.3 per cent, illustrating a wide divergence in price pressures across the bloc.

Across the EU, annual inflation fell in fifteen Member States compared with September 2025, remained unchanged in three and increased in nine.

Eurostat’s breakdown of the euro area figure showed that services provided the strongest upward push to inflation in October, contributing plus 1.54 percentage points.

Food, alcohol and tobacco followed, adding plus 0.48 percentage points, while non-energy industrial goods added plus 0.16 percentage points.

Energy, however, exerted a mild dampening effect, contributing minus 0.08 percentage points to the overall rate.

The data underscored Cyprus’ position as the EU economy experiencing the mildest price increases, with the country’s 0.2 per cent rate sitting far below the euro area average and highlighting continued disinflationary conditions domestically.