Consumer prices in Cyprus went down 0.9 percent year-on-year in September 2019, following a 0.7 percent decrease in the previous month. It was the fourth consecutive month of deflation, driven by prices of transport (-4.9 percent vs -2.9 percent in August); food & non-alcoholic beverages (-2.3 percent vs -3.2 percent); housing & utilities (-0.5 percent vs 1.2 percent) and clothing & footwear (-0.5 percent vs 0.4 percent). In addition, inflation slowed for miscellaneous goods & services (0.6 percent vs 0.9 percent); restaurants & hotels (1 percent vs 1.2 percent); furniture & household equipment (0.7 percent vs 1.4 percent) and recreation & culture (0.1 percent vs 0.8 percent). Conversely, prices rebounded for communication (2.7 percent vs -2.2 percent). On a monthly basis, consumer prices increased 0.6 percent, after rising 0.3 percent in the previous month. Inflation Rate in Cyprus averaged 3.75 percent from 1951 until 2019, reaching an all time high of 18.75 percent in July of 1951 and a record low of -3.59 percent in October of 1961.
Inflation Rate in Cyprus is expected to be 0.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Cyprus to stand at 1.20 in 12 months time. In the long-term, the Cyprus Inflation Rate is projected to trend around 1.80 percent in 2020, according to our econometric models.