Energy costs drive national inflation figures higher

Cyprus’ Harmonised Index of Consumer Prices recorded a notable rise of 3.5 per cent year-on-year in May 2026, according to the latest figures released by the Cyprus Statistical Service (Cystat).

This economic indicator, which tracks the evolution of prices for consumer goods and services, also saw a monthly increase of 0.8 per cent when comparing the period from April 2026 to May 2026.

When looking at the annual rate of change compared to May, 2025, the transport sector experienced the most significant upward shift with a rise of 9.7 per cent.

The category of recreation, sports and culture also saw a substantial increase, climbing by 7.8 per cent over the same twelve-month period.

Conversely, the data highlights areas where costs have diminished, with clothing and footwear witnessing the largest negative change at 8.5 per cent.

Information and communication costs also tracked lower, showing a decline of 2.9 per cent compared to the figures recorded in May 2025.

Shifting the focus to the most recent month-on-month data, the largest changes were observed within the sector of restaurants and accommodation services, which rose by 4.9 per cent.

Housing, water, electricity, natural gas and other fuels also contributed to the monthly inflationary pressure, registering an increase of 2.0 per cent.

When analysing the economic categories, energy stands out as the primary driver of volatility for both the annual and monthly periods.

Specifically, the energy category saw a significant jump of 12.6 per cent compared to May, 2025, and a further increase of 2.1 per cent when measured against April 2026.

These latest inflationary figures suggest a complex economic environment as households navigate fluctuating costs in essential services and daily commodities.