Our View: Government has no say over war-caused price hikes

Cyprus’ inflation rate is one of the lowest in eurozone. In February 2026, according to Eurostat, Cyprus posted an annual inflation rate of 0.9 per cent, significantly lower than the eurozone average which stood at 1.9 per cent. It is difficult to say how inflation is kept under check so effectively considering the government’s spending, the repeated increase of the minimum wage and its efforts to impose CoLA on as many businesses of the private sector as it could.

The inflation rate is low in spite of high government spending...