South Cyprus’ Inflation Rises Above Euro Area Average in May

Services also gained pace, rising to 3.5 per cent from 3 per cent, while non-energy industrial goods edged up to 0.9 per cent, compared with 0.8 per cent the previous month.

Food, alcohol and tobacco moved in the opposite direction, easing to 2 per cent from 2.4 per cent in April.

Cyprus’ rate was also higher than several major euro area economies, including Italy, where inflation stood at 3.3 per cent, France at 2.8 per cent and Germany at 2.7 per cent. 

However, it remained below the highest rates recorded in the bloc. Bulgaria posted the sharpest estimated increase at 6.3 per cent, followed by Lithuania at 5.1 per cent, Greece at 5 per cent, Croatia at 4.9 per cent and Luxembourg at 4.5 per cent.

Inflation was also higher than Cyprus in Belgium, at 4.1 per cent, as well as Estonia and Slovakia, both at 4 per cent.

At the lower end, Malta recorded the weakest inflation rate at 2.1 per cent, followed by Germany at 2.7 per cent, France at 2.8 per cent, Finland at 3 per cent and Portugal at 3.1 per cent.

On a monthly basis, Cyprus recorded a 0.9 per cent increase in May, one of the stronger monthly rises among euro area countries. Malta posted the highest monthly increase at 1.3 per cent, while Estonia, Greece and Finland each recorded monthly increases of 0.7 per cent or more.

By contrast, monthly inflation was negative in several countries, including Belgium, Germany, Ireland, Lithuania and Luxembourg.

Meanwhile, core inflation in the euro area, excluding energy, was estimated at 2.4 per cent.

The index excluding energy and unprocessed food stood at 2.3 per cent, while the measure excluding energy, food, alcohol and tobacco was estimated at 2.5 per cent.

Eurostat said the flash estimate is issued at the end of each reference month, while the complete HICP data for the euro area, the EU and member states is published around the middle of the following month.