In July 2023, Cyprus saw a decline in its annual inflation rate, dropping to 2.4% from 2.8% in June 2023 and a significant decrease from the 10.6% recorded in July 2022, according to Eurostat.
This trend was mirrored in the eurozone, as the inflation rate decreased to 5.3% from 5.5% in June, while recording a notable annual drop from 8.9% in July 2022. Similarly, the EU’s inflation rate saw a decline to 6.1% from 6.4% in June and 9.8% in the previous year.
Among EU member states, Belgium, Luxembourg, and Spain registered the lowest annual inflation rates at 1.7%, 2.0%, and 2.1%, respectively. Conversely, Hungary recorded the highest annual inflation rate at a notable 17.5%, while Slovakia and Poland closely followed at 10.3% each.
Comparing data with the previous month, nineteen member states, including Cyprus, witnessed a decrease in their annual inflation rates, while one remained stable and seven observed an increase.
During the same period, the key contributors to the euro area’s annual inflation rate were services (+2.47%), food, alcohol, and tobacco (+2.20%), non-energy industrial goods (+1.26%), and energy (-0.62%).