In March 2025, Cyprus experienced its lowest annual inflation rate in four months, slowing to 1.6% from February's 1.9%. This deceleration was primarily seen in the sectors of food and non-alcoholic beverages, which dropped to 2.1% from 2.3% the previous month. Transport costs also saw a significant decrease, from 3.7% to 1.2%. Likewise, price growth for recreation and culture decreased slightly from 2.7% to 2.6%, and for alcoholic beverages and tobacco from 1.4% to 1.2%. Meanwhile, clothing and footwear prices fell further, declining by 7.8% compared to a 5.1% drop in February, and costs for furnishings, household equipment, and supplies decreased by 1% following a 0.5% decrease. Conversely, inflation pressures intensified in sectors such as housing and utilities, which saw an increase from 2.8% to 4.2%, and in restaurants and hotels, where inflation rose to 5.1% from 3.5%. On a month-to-month basis, consumer prices inched up by 0.1% in March, following a 0.3% rise in February.