Cyprus inflation drops to 2.6 per cent in July

Inflation in Cyprus dropped to 2.6 per cent in July, reflecting a slowdown from the 3 per cent rate observed in both June and May, according to preliminary estimates released by Eurostat on Wednesday.

However, on a year-on-year basis, inflation has increased from the 2.4 per cent rate recorded in July 2023.

Moreover, Eurostat’s report showed that inflation across the Eurozone rose to 2.6 per cent in July, up from 2.5 per cent in June 2024.

The report also highlighted that the services sector contributed significantly to the inflation trajectory in July, with inflation in this sector coming up at 4 per cent, down from 4.1 per cent in June.

Additionally, the category of food, alcoholic beverages, and tobacco saw a slight decrease to 2.3 per cent from 2.4 per cent.

Furthermore, energy prices increased to 1.3 per cent from 0.2 per cent, while non-energy products experienced a marginal rise to 0.8 per cent from 0.7 per cent the previous month.

Among Eurozone countries, Belgium is expected to have recorded the highest inflation rate for July at 5.5 per cent, followed by Estonia and the Netherlands at 3.5 per cent.

Conversely, Finland and Latvia are projected to have the lowest inflation rates, at 0.6 per cent and 0.8 per cent, respectively.