CLOSE
Loading...
12° Nicosia,
14 August, 2026
 
Home  /  Comment  /  Opinion

Will they at least stabilize?

Inflation is easing. Fine, let’s not expect prices to fall. But they shouldn’t keep rising when deflation stands at 0.2%.

Panayiotis Rougalas

Panayiotis Rougalas

In May 2025, the Consumer Price Index rose by 0.26 points, reaching 117.57 compared to 117.31 in April. Inflation for the month fell by 0.2%, a rare event not seen in years, not since the Covid-19 crisis.

And yet, despite this so-called “deflation,” prices are still rising in key sectors compared to May 2024. According to the Statistical Service, there were significant increases in Agricultural Products (4.7%) and Services (3.5%), while the largest drops came from Petroleum Products (-12.8%) and Electricity (-8.6%). Compared to April 2025, the most notable monthly change was again in Petroleum Products, down 3.3%.

Looking at the period from January to May 2025 versus the same stretch last year, the biggest shifts were in Clothing and Footwear (-5.6%), Restaurants and Hotels (+4.6%), and Education (+3.7%). Which means that even after three to four years of rising food prices, we still can’t be sure they’ll hold steady, let alone fall, at today’s already-high levels.

When the inflation wave first hit, driving prices up across the board, most people assumed it was temporary. That once inflation cooled, prices on goods and services would return to normal. That assumption, we now know, was far from reality. The only noticeable (and occasional) price drops the average person has seen, or might still see, are in gasoline for their car or heating oil in winter.

Naturally, people expected that if oil prices fell, transporting goods would cost less, and final prices on store shelves would follow. But no.

Now, with deflationary trends starting to appear, people are hoping, reasonably, that at the very least, prices will stop rising. That hope isn’t just reasonable. It’s fair. The burden of high prices that’s been squeezing households since the Covid era has to ease eventually. The data demand it. Another round of hikes in essential goods would be impossible to justify.

Inflation is coming down. Fine, maybe prices won’t drop. But for them to keep rising when deflation is at 0.2%? That’s simply not acceptable.

This opinion was translated from its Greek original.

TAGS
Cyprus  |  opinion  |  inflation  |  deflation  |  consumer

Opinion: Latest Articles

As marina and port projects reshape the coastline, protecting the marine environment must remain a priority. Photo credit: concretelayer.com

Can the sea be bought?

Cyprus’s coastal development is putting increasing pressure on the seas that residents and visitors have long enjoyed for ...
Paris Demetriades
 |  OPINION
The government's handling of the CY-Alert failure still leaves unanswered questions about a system designed to protect lives in real time. Photo is screen captured from Atlas Fireteam Facebook video

No fault, no accountability

The defence minister's public show of anger quickly lost credibility once the full facts behind the National Guard operation ...
Thanasis Photiou
 |  OPINION
Record revenues came with record controversy. Photo credit: Alfredo Estrella/AFP via France24

Infantino’s promise

The 2026 World Cup delivered record revenues and strengthened Gianni Infantino's vision of turning FIFA into an even more ...
Opinion
 |  OPINION
This summer, as vacation posts flood our feeds, it is worth remembering that what we see online is rarely a complete or accurate picture of anyone's life. Photo credit: Unsplash

The FOMO industry

As social media turns everyday life into a carefully curated performance, the fear of missing out has become less of a personal ...
Paris Demetriades
 |  OPINION
The public warmth between Donald Trump and Recep Tayyip Erdoğan says more about today's strategic landscape than Nicosia's expectations. Photo credit: AFP via turkiyetoday.com

The navel of the world

Cyprus risks mistaking diplomatic optimism for geopolitical reality as the EU's priorities increasingly center on Turkey. ...
Pavlos Xanthoulis
 |  OPINION
The unanswered questions that have haunted soldiers and refugees for decades continue to point one man toward faith.

Bullets are not spared...

A new memoir revisits the impossible choices of the 1974 war through one survivor's personal testimony.
Opinion
 |  OPINION
America's constitutional checks will be crucial ahead of the 2027 French presidential election and future global stability. Photo credit: www.nato.int

Whatever happens in Ankara...

Trump's praise for Turkish President Recep Tayyip Erdoğan leaves Athens with little room to respond through traditional ...
Opinion
 |  OPINION
Competing calendars and weaponized histories manufacture the illusion of an inevitable final conflict. Image from The Crusader Bible at The Blanton Museum of Arts

Reality or narratives?

Our obsession with historical cycles blinds us to the present reality in the Middle East.
Opinion
 |  OPINION
X