Cyprus industrial prices climb as European energy costs soar

The sharp rise in energy prices pushed industrial producer prices higher across the euro area and European Union in August, with Cyprus also recording an increase, according to a report from Eurostat. Industrial producer prices in Cyprus rose 0.2 per cent month on month in August, following a 1.8 per cent increase in July, while prices across the euro area and EU both climbed 1.9 per cent. The latest figures from Eurostat, the statistical office of the European Union, showed that the August increase in Cyprus was considerably smaller than the 1.9 per cent rises recorded in both the euro area and EU. Compared with August 2025, however, industrial producer prices in Cyprus were 4.2 per cent higher, while the annual increases reached 8.2 per cent in the euro area and 8.0 per cent across the EU. The figures come as Cyprus’ industrial sector continues to record higher turnover, although the latest Cyprus Statistical Service (Cystat) data also point to a widening difference between domestic demand and export performance. Cyprus’ Industrial Turnover Index rose 5 per cent year on year in July, reaching 168.8 units, with a 7.4 per cent increase in domestic market demand more than offsetting an 8.6 per cent decline in exports. For the first seven months of 2026, industrial turnover was 3.9 per cent higher than during the corresponding period of 2025. The latest Eurostat data show that industrial producer prices in Cyprus followed a markedly different monthly path from the euro area and EU during much of the first half of the year. Cyprus recorded a 0.6 per cent fall in March, followed by increases of 0.3 per cent in April, 3.2 per cent in May, 0.3 per cent in June, 1.8 per cent in July and 0.2 per cent in August. In the euro area, prices increased by 3.4 per cent in March, 0.6 per cent in April and 0.2 per cent in May before falling 0.3 per cent in June and then rising 1.6 per cent in July and 1.9 per cent in August. Across the EU, prices rose 3.1 per cent in March, 0.8 per cent in April and 0.2 per cent in May, declined 0.2 per cent in June, and then increased 1.4 per cent in July and 1.9 per cent in August. The annual comparison also shows that Cyprus moved from falling producer prices at the start of the year to sustained annual increases. Industrial producer prices in Cyprus were 0.4 per cent lower than a year earlier in both March and April, before rising 2.0 per cent in May, 2.0 per cent in June, 4.0 per cent in July and 4.2 per cent in August. In the euro area, the annual increase accelerated from 2.0 per cent in March to 4.9 per cent in April and 5.9 per cent in May, before easing to 4.6 per cent in June, rising to 5.8 per cent in July and reaching 8.2 per cent in August. The EU followed a similar pattern, with annual growth rising from 2.0 per cent in March to 4.9 per cent in April, 5.7 per cent in May, 4.7 per cent in June, 5.6 per cent in July and 8.0 per cent in August. The acceleration across Europe was driven largely by energy. In the euro area, energy producer prices jumped 5.6 per cent in August from July, while prices for intermediate goods rose 0.4 per cent, capital goods 0.2 per cent, durable consumer goods 0.4 per cent and non-durable consumer goods 0.1 per cent. Excluding energy, total industrial producer prices in the euro area increased by 0.2 per cent during the month. The EU recorded a 5.5 per cent monthly increase in energy prices, while intermediate goods rose 0.4 per cent, capital goods 0.2 per cent, durable consumer goods 0.3 per cent and non-durable consumer goods 0.2 per cent. EU industrial producer prices excluding energy also increased 0.2 per cent. All EU member states recorded monthly increases in August, with Bulgaria and Estonia registering the largest rises at 3.3 per cent each, followed by Italy at 3.1 per cent and Denmark at 3.0 per cent. On an annual basis, energy again dominated the figures, with prices in the euro area rising 21.0 per cent from August 2025. Intermediate goods increased 6.8 per cent, capital goods 2.6 per cent and durable consumer goods 3.4 per cent, while non-durable consumer goods fell 0.8 per cent. Total industrial producer prices excluding energy increased 3.4 per cent in the euro area. In the EU, energy prices were 20.7 per cent higher than a year earlier, while intermediate goods increased 6.5 per cent, capital goods 2.4 per cent and durable consumer goods 3.2 per cent. Non-durable consumer goods fell 0.7 per cent, while industrial producer prices excluding energy increased 3.3 per cent. Ireland recorded the largest annual increase in industrial producer prices at 17.1 per cent, followed by Bulgaria at 16.8 per cent and Lithuania at 14.6 per cent. Luxembourg was the only member state to record an annual decline, with prices falling 7.9 per cent. The movement in Cyprus’ overall producer price index also illustrates the steady increase in industrial prices during the year. Using 2021 as the base year, Cyprus’ industrial producer price index stood at 123.1 in March, rising to 123.5 in April, 127.4 in May, 127.8 in June, 130.1 in July and 130.3 in August. The corresponding euro area index rose from 129.0 in March to 134.3 in August, while the EU index increased from 130.6 to 135.9. A separate measure excluding energy shows a more gradual increase in Cyprus. The Cypriot index for industrial producer prices excluding energy rose from 121.8 in March to 122.1 in April, 123.3 in May, 123.7 in June, 123.9 in July and 124.0 in August. The euro area index excluding energy rose from 120.8 in March to 123.2 in August, while the EU index increased from 121.0 to 123.5 over the same period. The Cystat turnover figures meanwhile point to continued activity in Cyprus’ industrial economy, but with significant differences between individual sectors. Manufacturing turnover increased 4.8 per cent in July, with electronic, optical and electrical equipment recording an 85.3 per cent surge. Furniture, machinery repair, textiles and wood products also recorded solid increases. These gains were partly offset by declines in transport equipment, which fell 13.2 per cent, chemicals and pharmaceuticals, which dropped 10.1 per cent, and paper products, which fell 4.2 per cent. Outside manufacturing, water supply and materials recovery recorded the strongest growth, with turnover rising 16 per cent. Mining and quarrying increased 7.4 per cent, while electricity supply grew 3.4 per cent. The combination of higher producer prices and increased industrial turnover suggests that Cyprus’ industrial sector entered the second half of 2026 with stronger nominal activity, although the sharp decline in exports remains a notable weakness. The latest figures also underline the different pressures facing industrial producers, with energy costs rising far more rapidly across the European market than prices excluding energy, while Cyprus has so far recorded a more moderate monthly increase in overall producer prices.