Inflation Increases in Cyprus and Upcoming Challenges
October 3, 2026
Cyprus has experienced a dramatic increase in inflation, rising from zero percent in 2025 to 5.2% in 2026. This significant change has raised concerns, particularly as it coincides with new government support measures. The Fiscal Council warns that current policies may only temporarily mask the issue and suggests a more permanent solution. Cyprus now has the third highest inflation rate in the EU, behind Lithuania and Bulgaria. This situation raises worries about the future of the economy.