Cyprus inflation holds at 4% as eurozone expectations ease

Economy cyprusinflationTop News Cyprus inflation holds at 4% as eurozone expectations ease E Kalathi Reveals Cheapest Supermarkets With Price Gaps Reaching €156 Relevant News Cyprus inflation holds at 4% as eurozone expectations ease 25 August 2026 Cyprus’s only university rights observatory marks second year with five new studies 25 August 2026 Tremithousa parents protest today over plan to remove school’s prefab classroom 25 August 2026 Theano Thiopoulou 25 August 2026 FacebookXWhatsAppEmailPrintViber Eurozone consumers expect inflation to ease gradually and economic conditions to improve slightly, but they do not yet feel real financial security, according to the European Central Bank’s Consumer Expectations Survey. The cost of living remains a key concern, incomes are expected to rise slowly, and confidence in the labour market is showing signs of fatigue. In Cyprus, however, the latest data for July show high prices remain firmly present in households’ daily lives. Harmonised inflation stood at 4%, showing price pressures haven’t let up. For Cypriot consumers, the survey suggests, economic reality is reflected not just in the headline inflation rate but above all in the cost of groceries, housing, energy and transport. Eurozone consumers said in July 2026 that they perceived inflation over the past 12 months at 3.5%, down from 3.6% in June. They expect inflation to fall further, to 2.9% over the next 12 months, down from 3.0% previously, while expectations for the next three years eased to 2.7%. Expectations for the next five years held steady at 2.4%. The biggest reservation concerns disposable income. Consumers expect their nominal income to rise by just 1.0% over the next 12 months, down from 1.1% in June, while expecting their spending to increase by 3.6%, unchanged from the previous month. Put simply, many consumers still see the cost of living rising faster than their incomes. On the economy, pessimism is easing but has not reversed. Expectations for economic growth improved to -1.2%, from -1.4% in June, though they remain in negative territory. The expected unemployment rate in 12 months held at 11.2%, suggesting consumers do not anticipate a significant deterioration in the labour market. At the same time, quarterly data show a worsening mood: unemployed respondents consider it less likely they will find work, while employed respondents see an increased risk of losing their jobs. On housing, expectations remain stable. Consumers expect house prices to rise by 3.4% over the next 12 months, unchanged from June. Mortgage rate expectations, by contrast, eased slightly, to 4.9% from 5.0%, offering some relief to those considering home financing. As in previous months, lower-income households expected the highest mortgage rates at a 12-month horizon, at 5.7%, while higher-income households expected the lowest, at 4.4%. The same quarterly data also showed shifting credit conditions. The net share of households reporting tighter access to credit over the past 12 months, relative to those reporting easier access, rose compared with June, while the net share expecting stricter credit conditions over the next 12 months, relative to those expecting easier conditions, fell. The share of consumers who said they had applied for credit in the past three months rose to 14.3% in July, from 13.4% in April. The survey was conducted between 2 and 27 July among around 19,000 adult consumers in 11 eurozone countries, with results published on 21 August 2026. Subscribe to our Newsletter Latest News Cyprus’s only university rights observatory marks second year with five new studies Tremithousa parents protest today over plan to remove school’s prefab classroom Antonio Costa to visit Cyprus 4 September as EU budget tops agenda Cyprus extends lifeguard hours, reviews short-term contracts after drownings Investigators await forensic clues from shell casings, stolen car in Ayia Napa murder attempt Homeless man arrested in Larnaca after attacking police officer during welfare check Police investigate speed of motorcyclist killed in Larnaca crash Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.