AKEL calls on Cyprus government to take five measures against 5.2% inflation

The opposition party AKEL has called on the Cyprus government to urgently support low- and middle-income families, as inflation on the island stood at 5.2% in September. The party believes the government’s current measures are not enough.

According to Eurostat’s flash estimate, annual inflation in Cyprus, measured by the Harmonised Index of Consumer Prices, remained at August’s level of 5.2% in September. It was still 3.0% in April and stood at 0% in September 2025. The index fell by 0.4% over the month. Across the euro area, inflation accelerated in September, rising to 3.8% from 3.2% in August.

AKEL points out that prices have jumped from zero to 5.2% in a year, while electricity, fuel and heating costs continue to put pressure on household budgets. The party is proposing a package of five measures: a transport allowance for commuting to work, nationwide assistance with heating costs in winter, lower vehicle registration fees, a permanent reduction of VAT on electricity to 5%, and an expansion of social tariffs for utilities.

AKEL is also demanding that the additional revenue the state receives as a result of inflation be returned to citizens through targeted support. “Ultimately, effectiveness is measured by whether assistance reaches household budgets,” the party’s position says.

The Cyprus government previously announced that it would eliminate VAT on bread, milk, coffee, sugar and baby food from 12 October, while a zero rate has applied to fresh meat since 1 October.