Newsroom
The drive to work, the electricity bill, and the weekly supermarket shop are putting more pressure on household budgets, with inflation in Cyprus reaching 3.7% in September.
Figures released Thursday by the Statistical Service show consumer prices rose 0.74% from August alone. September’s annual inflation rate was also above the 2.3% average recorded over the first nine months of 2026.
For families, the problem is where the biggest increases are happening: expenses that are difficult to cut.
Petroleum products cost 25.8% more than a year earlier, while the electricity and water category rose 11.2%. Transport prices overall increased 11.9%, and the broader category covering housing, water, electricity, and other fuels climbed 9.6%.
For someone driving from a village into Nicosia or Limassol every day, fuel is a necessary expense. The same goes for parents doing the school run and small businesses making deliveries. When those costs rise, there is less money left for everything else.
What does 3.7% inflation mean in euros?
As a simple illustration, a basket of goods and services that cost €1,000 last September would cost about €1,037 this September if its prices rose in line with the overall inflation rate.
That is an extra €37 for the same purchases. But it is an illustration, not a calculation of every family’s bills. A household spending a large share of its income on fuel and utilities could feel a much bigger squeeze.
The petroleum increase shows why. Spending €100 on a fixed quantity of petroleum products last September would mean paying about €125.80 for the same quantity now, if its price followed the category average. Individual fuels and suppliers can differ.
September also brought increases in several regular expenses compared with August. Food and non-alcoholic drinks rose 1.3%, education services increased 1.8%, and housing and utilities climbed 3%.
These are monthly increases. In other words, the supermarket basket became more expensive even compared with just a month earlier.
There was some relief elsewhere. Clothing and footwear prices were 10.8% lower than a year ago, while industrial goods excluding petroleum products fell 1.1%. Transport prices also edged down 0.8% from August, despite remaining substantially higher than last September.
Cheaper shoes or clothes can help, particularly when children need a new size every few months. But families still have to pay for electricity, fill the car, and put food on the table.
For households whose income has stayed the same, the September figures mean their money buys less. The pressure is likely to be felt most by those who already spend much of their pay on essentials, with little room left to absorb another increase.
