Cyprus records highest euro area inflation rate behind Romania and Lithuania

Cyprus recorded the highest inflation rate in the euro area after Romania and Lithuania in August, as annual consumer price growth accelerated to 5.2 per cent from 4.4 per cent in July, according to Eurostat.

The latest figure marked another sharp increase for Cyprus, where inflation had stood at just 0.0 per cent a year earlier.

Cyprus’ annual inflation rate has risen steadily in recent months, reaching 1.5 per cent in March, 3.0 per cent in April, 3.5 per cent in May, 4.1 per cent in June and 4.4 per cent in July before reaching 5.2 per cent in August.

Prices in Cyprus also recorded a 1.5 per cent increase between July and August, the strongest monthly rise among the figures provided in the Eurostat data.

The acceleration in Cyprus came as inflation also picked up across the wider euro area and European Union.

Euro area annual inflation reached 3.2 per cent in August, up from 2.9 per cent in July and 2.0 per cent in August 2025.

EU annual inflation also reached 3.2 per cent, compared with 3.0 per cent in July and 2.4 per cent a year earlier.

Both the euro area and EU recorded a monthly inflation rate of 0.4 per cent in August, considerably below the 1.5 per cent recorded in Cyprus.

The euro area had recorded annual inflation of 2.6 per cent in March, 3.0 per cent in April, 3.2 per cent in May and 2.8 per cent in June before reaching 2.9 per cent in July and 3.2 per cent in August.

For the EU, annual inflation stood at 2.8 per cent in March, 3.2 per cent in April, 3.3 per cent in May, 2.9 per cent in June, 3.0 per cent in July and 3.2 per cent in August.

Eurostat, the statistical office of the European Union, said 20 member states recorded higher annual inflation in August than in July, while inflation fell in six and remained unchanged in one.

Romania had the highest annual inflation rate at 6.3 per cent, followed by Lithuania at 5.6 per cent and Cyprus at 5.2 per cent.

At the other end of the scale, Sweden recorded the lowest annual inflation rate at 0.3 per cent, followed by Estonia at 1.3 per cent and the Czech Republic at 1.5 per cent.

The latest Cypriot figure was also notably higher than that of neighbouring Greece, where annual inflation rose to 3.7 per cent in August from 2.7 per cent in July.

Greece had recorded inflation of 3.1 per cent in August 2025, before rising to 3.4 per cent in March, 4.6 per cent in April and 4.9 per cent in May, then falling to 3.9 per cent in June and 2.7 per cent in July.

Greece’s monthly inflation rate in August was 0.4 per cent, matching the rates recorded in both the euro area and the EU.

Across the euro area, services made the largest contribution to annual inflation in August, adding 1.43 percentage points to the overall rate.

Energy was the second-largest contributor, adding 1.29 percentage points, while non-energy industrial goods contributed 0.30 percentage points.

Food, alcohol and tobacco added a further 0.22 percentage points to the annual inflation rate.

The August figures therefore placed Cyprus well above the euro area and EU averages at a time when price pressures were increasing across the wider European economy.

Cyprus’ inflation rate of 5.2 per cent was 1.2 percentage points above the euro area and EU rates, while its monthly increase was 1.1 percentage points higher than the corresponding 0.4 per cent increases recorded in both blocs.