Cyprus Leads Europe in Low Inflation – July 2023

Cyprus recorded the lowest harmonized index of inflation in Europe in July, according to Eurostat estimates, reaching 0.1%. This is lower than the 2% target set by the ECB.

In May and June, the index was 0.4% and 0.5% respectively, while in July 2022 it was 2.4%. The Statistical Service of Cyprus will announce the official July figures on August 7. Deflation may also be reported.

After Cyprus, France has the second lowest index at 0.9%. Other countries such as Ireland (1.6%), Italy (1.7%) and Germany (1.8%) also show low inflation rates.

In the Eurozone, the harmonized index of inflation remained at 2%, while structural inflation remained unchanged at 2.3%.

In the individual data, services showed an annual rate of 3.1%, while food increased to 3.3%. Energy prices continued to decline by -2.5%.