Electricity costs drive Cyprus industrial prices higher

Industrial producer prices in Cyprus rose by 6.2 per cent year-on-year in September 2026, driven mainly by higher electricity prices, according to figures released by the Cyprus Statistical Service (Cystat) on Friday. The increase came as the Producer Price Index for Industry reached 130.5 points in September, using 2021 as the base year, marking a 2.3 per cent rise compared with August. For the first nine months of 2026, industrial producer prices increased by 2.1 per cent compared with the corresponding period of 2025, indicating that price pressures across the industrial sector continued to build. The strongest annual increase was recorded in electricity supply, where producer prices rose by 21.1 per cent compared with September 2025. Water supply and materials recovery followed with an increase of 10.3 per cent, while manufacturing prices rose by 2.4 per cent and prices in mining and quarrying increased by 0.8 per cent. The monthly figures also highlighted the influence of electricity costs, with electricity supply prices climbing by 10.5 per cent between August and September 2026. Over the same period, prices in water supply and materials recovery increased by 1.7 per cent, while manufacturing recorded a more modest rise of 0.2 per cent. Mining and quarrying prices remained unchanged compared with the previous month. The figures suggest that electricity was the main contributor to the overall monthly increase, while annual price growth was evident across all four main industrial sectors. Within manufacturing, several industries recorded particularly pronounced annual increases in September. The largest rise was in the manufacture of computer, electronic and optical products, where producer prices increased by 13 per cent compared with the same month in 2025. This was followed by the manufacture of basic metals and fabricated metal products, which recorded an increase of 5.6 per cent. Prices in furniture manufacturing and repair and installation of machinery rose by 5.2 per cent. The wood industry, including the manufacture of products made from wood and cork, excluding furniture, recorded an annual increase of 4.5 per cent. Meanwhile, the manufacture of machinery and equipment, motor vehicles and other transport equipment saw prices rise by 2.9 per cent. The increases across manufacturing categories indicate that price pressures were not confined to energy-related activities, but were also evident in a range of industrial production and equipment-related sectors. The overall Producer Price Index measures changes in prices received by domestic producers for their industrial output and provides an indication of cost and pricing developments across the sector.