Cyprus posts lowest inflation rate in EU in December

Cyprus continued to record one of the lowest inflation rates in the European Union in December 2025, as price pressures eased across the euro area and the bloc as a whole, according to Eurostat.

The annual inflation rate in Cyprus stood at 0.1 per cent, placing the country at the bottom of the EU inflation scale.

This confirmed that Cyprus remains well below the euro area and EU averages, extending a pattern of subdued inflation.

Across the euro area, annual inflation fell to 1.9 per cent in December 2025, down from 2.1 per cent in November.

A year earlier, euro area inflation had stood at 2.4 per cent.

For the European Union as a whole, annual inflation eased to 2.3 per cent in December 2025, compared with 2.4 per cent in November.

EU inflation had been higher a year earlier, at 2.7 per cent.

Alongside Cyprus, France recorded an annual inflation rate of 0.7 per cent, while Italy posted 1.2 per cent, making them the other lowest-inflation countries in December.

At the opposite end of the scale, Romania recorded the highest annual inflation rate at 8.6 per cent.

This was followed by Slovakia at 4.1 per cent and Estonia at 4.0 per cent.

Compared with November 2025, annual inflation fell in eighteen EU member states, highlighting a broad-based easing in price pressures.

Over the same period, inflation remained stable in three member states.

By contrast, six member states recorded an increase in annual inflation compared with the previous month.

Within the euro area, services made the largest contribution to annual inflation, adding 1.54 percentage points to the overall rate.

This was followed by food, alcohol and tobacco, which contributed 0.49 percentage points.

Non-energy industrial goods added a more modest 0.09 percentage points.

Energy exerted a negative contribution of minus 0.18 percentage points, dampening overall inflation.

The December figures underline that Cyprus continues to experience limited price pressures, particularly when compared with higher-inflation economies in eastern Europe.