Cypriot government policies introduced last year have played a key role in keeping prices relatively contained, according to the island’s Finance Ministry, which pointed to the latest Eurostat data showing a 1.5% inflation rate in March.
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% year-on-year, 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%.
For the first quarter of the year, inflation averaged 1.2%, down from 2.1% during the same period last year, but March was crucially the first full month of the war in the Middle East.
“In a period of significant geopolitical uncertainty, as well as rising energy prices, Cyprus continues to record low rates of price increases,” the ministry said.