Consumer prices in Cyprus declined by 0.9% year-on-year in July 2025, following a 0.4% decrease in the previous month. This marked the third consecutive month of deflation and the steepest fall in consumer prices since March 2021. Prices mostly dropped for food and non-alcoholic beverages (-3.02% vs -0.85% in June), clothing and footwear (-7.3% vs -5.18%), and housing utilities (-2.66% vs -2.19). Additionally, prices softened for recreation and culture (4.07% vs 5.09%), hotels and restaurants (5.00% vs 5.49%), and miscellaneous goods and services (0.82% vs 1.07%). Meanwhile, costs rose for alcoholic beverages and tobacco (1.24% vs 1.04%), health (1.68% vs 1.61%), communication (0.52% vs 0.38%), and education (3.92% vs 3.73%). On a monthly basis, consumer prices fell by 0.5%, following a 0.2% fall in June.