The annual inflation rate in Cyprus rose to 3.52% in August 2026 from 2.93% in the previous month, marking the largest increase since September 2023. The acceleration was driven largely by stronger price increases for transportation (11.36% vs 5.96% in July), restaurants and hotels (3.42% vs 3.08%), and miscellaneous goods and services (0.68% vs 0.32%). At the same time, price growth remained steady for education (at 3.52%) and insurance and financial services (at 0.03%), while costs fell at a softer pace for information and communication (-2.72% vs -3.26%) and furnishings and household equipment (-0.84% vs -0.98%). In contrast, inflation moderated for food and non-alcoholic beverages (3.81% vs 4.94%), alcoholic beverages and tobacco (0.88% vs 0.98%), housing and utilities (6.86% vs 7.21%), health (1.03% vs 1.11%), and recreation and culture (3.23% vs 3.56%). On a monthly basis, consumer prices rose 0.91% in August, rebounding from a 0.66% drop in July.