Cyprus: Inflation stabilizes in December from November
Latest reading: Harmonized consumer prices rose 0.1% on a year-on-year basis in December, unchanged from November. The reading remained the lowest in the EU for the eighth consecutive month.
Relative to the previous month’s data, there were reduced price pressures for food and non-alcoholic beverages (-2.1% vs -1.6% in November), housing and utilities (-3.2% vs -2.6% in November) and restaurants and hotels (+4.4% vs +4.5% in November). At the same time, the variations in recreation and transportation were the same as in the prior month (+5.1% and -1.5%, respectively).
Meanwhile, consumer prices declined 0.5% in December, unchanged from the prior month’s reading.
Lastly, harmonized consumer prices were down 0.37% in December in month-on-month terms, following a 1.06% decline in the prior month.
Panelist insight: EIU analysts commented on this year’s outlook:
“We have also revised up our inflation forecast for 2026 from 1.4% to 1.8%. Higher inflation in 2026 will partially reflect the effects of low base effects from deflation in much of the year-earlier period. However, it will also reflect a very hot labour market and low unemployment, which should contribute to strong core inflation in 2026.”