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Government policies introduced since 2025 have played a clear role in keeping prices relatively contained, according to the Ministry of Finance, which pointed to the latest Eurostat data to support its position.
In a statement, the ministry said, “The measures taken by the Government since 2025, and which continue to be implemented, have contributed and proven effective in maintaining price levels at lower levels than those of other partners.”
The data show that Cyprus recorded one of the lowest inflation rates in the European Union. At 1.5%, it ranked second lowest, alongside the Czech Republic and Sweden, and just behind Denmark at 1%. This figure remains well below the averages for both the eurozone at 2.6% and the EU at 2.8%.
Across Europe, inflation showed an upward shift compared with February. In the eurozone, the annual rate rose above the 1.9% recorded the previous month, though it remained lower than the 2.2% seen a year earlier. A similar pattern appeared across the EU, where inflation increased from 2.1% in February but stayed below the 2.5% level recorded last year.
For Cyprus specifically, the Harmonised Index of Consumer Prices rose by 1.5% in March 2026 compared with the same month in 2025. For the first quarter of the year, inflation averaged 1.2%, down from 2.1% during the same period last year.
The ministry linked these results to ongoing policy decisions, stating that “in a period of significant geopolitical uncertainty, as well as rising energy prices, Cyprus continues to record low rates of price increases, significantly lower than those of the eurozone.”
