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Cyprus recorded a notable easing of inflation at the start of 2026, placing it among the European Union’s lowest-inflation economies, according to newly released figures from Eurostat.
Annual inflation in Cyprus measured 1.2% in January 2026, a sharp drop from the 2.9% registered in the same month a year earlier. With this reading, the country ranked fifth lowest among EU member states.
Across the euro area, price growth also moderated. Inflation stood at 1.7% in January, down from 2.0% in December 2025 and from 2.5% in January 2025. The wider European Union followed a similar trend, with annual inflation at 2.0% in January 2026, compared with 2.3% the previous month and 2.8% one year earlier.
Eurostat’s breakdown shows that France posted the lowest annual inflation rate at 0.4%, followed by Denmark at 0.6%. Finland and Italy both recorded 1.0%. At the opposite end of the scale, Romania had the highest inflation at 8.5%, while Slovakia and Estonia reported 4.3% and 3.8% respectively.
Month-to-month comparisons indicate that inflation fell in 23 EU countries relative to December 2025, remained stable in one member state, and increased in three.
Looking specifically at the euro area’s inflation drivers for January, services exerted the strongest upward pressure, contributing 1.45 percentage points. Food, alcohol and tobacco added 0.51 points, while non-energy industrial goods contributed a modest 0.09 points. Energy prices, however, helped dampen overall inflation, subtracting 0.39 percentage points from the headline rate.
