Cyprus Maintains the Lowest Inflation Rate in the Eurozone

Cyprus has once again shown the best performance in the eurozone in terms of inflation. According to Eurostat data, in September 2025, the annual inflation rate on the island was 0.0%, the lowest among all European Union countries. For comparison, the average inflation rate in the eurozone reached 2.2%, and for the EU as a whole — 2.6%.

Economists note that Cyprus has maintained a low level of price growth for several consecutive months. In July, the indicator was 0.1%, and in August — 0.2%. This stability is explained by moderate growth in food and beverage prices, a decrease in transport costs, and stabilization of rent and utility payments.

According to the Ministry of Finance, given high inflation in other eurozone countries, this dynamic in Cyprus has been made possible by a combination of factors — a strong euro, falling energy prices, control over trade markups, and balanced tax policy.

At the same time, experts warn that a prolonged period of zero inflation may indicate a slowdown in domestic demand. This could pose a challenge for an economy oriented towards tourism, services, and internal consumption.

The Central Bank of Cyprus emphasized in its latest report that the situation is under control and does not show signs of deflation. The government continues to maintain price stability and stimulate economic growth without increasing price pressure.

Thus, Cyprus remains one of the most resilient economies in the eurozone in terms of consumer price dynamics and is among the countries with the best price stability in the European Union.