Consumer prices in Cyprus declined 0.2 percent year-on-year in June of 2019, following a 0.2 percent rise in the previous month. It was the first month of deflation since April 2018, as cost continued to decline for food & non-alcoholic beverages (-1.0 percent vs -0.7 percent in May); transport (-3.7 percent vs -1.5 percent) and for clothing & footwear (-2.9 percent vs -2.6 percent). In addition, prices slowed for housing & utilities (4.8 percent vs 5.3 percent); miscellaneous goods & services (1.1 percent vs 1.5 percent) and restaurants & hotels (1.6 percent vs 1.7 percent). On the other hand, furniture & household equipment cost rebounded (0.2 percent vs -0.6 percent) while inflation was steady for education (at 1.9 percent) and alcoholic beverages & tobacco (at 0.8 percent). On a monthly basis, consumer prices increased 0.1 percent, the same pace as in May. Inflation Rate in Cyprus averaged 3.77 percent from 1951 until 2019, reaching an all time high of 18.75 percent in July of 1951 and a record low of -3.59 percent in October of 1961.
Inflation Rate in Cyprus is expected to be 0.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Cyprus to stand at 2.20 in 12 months time. In the long-term, the Cyprus Inflation Rate is projected to trend around 2.50 percent in 2020, according to our econometric models.