Cyprus recorded the lowest inflation rate in the eurozone in July — just 0.1%

In July 2025, Cyprus recorded the lowest inflation rate among all eurozone countries, reaching only 0.1% year-on-year, according to Eurostat’s preliminary report.

Overall inflation in the eurozone stood at 2% in July, the same level as the previous month. The main contributors to price increases were food, alcohol, and tobacco, which rose by an average of 3.3%. Services increased by 3.1%, and non-energy industrial goods by 0.8%. Energy prices continued to decline, falling by 2.5% compared to July last year.

Core inflation, which excludes food and energy, remained at 2.3% year-on-year. However, on a monthly basis, it fell by 0.2% — the first decrease since January 2025.

Among eurozone countries, the highest price increases were observed in Estonia (+5.6%) and Croatia (+4.5%). On the opposite end were Cyprus, Latvia, and Lithuania, with annual inflation of just 0.1% in July.

For comparison, inflation in the eurozone was also 2% in June, while Cyprus had the lowest rate at 0.5%.

Experts note that such a low inflation rate in Cyprus may ease pressure on the European Central Bank regarding further monetary tightening.