Cyprus inflation falls by 0.7% in September for fifth consecutive month

Inflation in Cyprus continued to ease in September, marking the fifth consecutive month of annual decline. According to data released on Thursday by the Statistical Service of Cyprus, the Consumer Price Index (CPI) recorded a year-on-year decrease of 0.7%.

The CPI reached 117.71 units in September compared with 117.04 in August, reflecting a monthly increase of 0.67 units or 0.6%.

On an annual basis, the largest positive change was recorded in Services (+3.1%), while the steepest decreases were observed in Electricity (-10.9%), Agricultural Products (-5.0%) and Petroleum Products (-2.7%). Compared with August, Agricultural Products posted the sharpest increase (+3.5%).

Restaurants and Hotels (+4.4%), Education (+3.4%) and Recreation and Culture (+3.3%) saw the strongest annual rises compared with September 2024, while Clothing and Footwear dropped by 7.3%.

For the period January-September 2025, compared with the same period of 2024, the biggest increases were recorded in Restaurants and Hotels (+4.7%), Education (+3.7%) and Recreation and Culture (+3.4%), while Clothing and Footwear declined by 6.2%.

In terms of contributions to the overall CPI, Restaurants and Hotels (+0.50) and Education (+0.27) made the largest positive annual impact, while Transport (-0.78) and Food and Non-Alcoholic Beverages (-0.37) had the biggest negative impact.

On a monthly basis, the increase in the CPI was mainly driven by Clothing and Footwear (+0.37) and Food and Non-Alcoholic Beverages (+0.35). The largest downward effect came from Airfares (-0.21).

Cyprus Department of Meteorology – Forecast for the Sea Area of Cyprus (B)

FOR THE PERIOD FROM 1200 02/10/2025 UNTIL 1200 03/10/2025

Atmospheric pressure at the time of issue: 1011hPa (hectopascal)

Weak low pressure is affecting the area. The weather will be mainly fine.

Visibility: Good

Sea surface temperature: 27°C

Warnings: NIL

New lending records significant decline in August

New lending recorded a significant decrease in August 2025, according to data released Thursday by the Central Bank of Cyprus (CBC) on average deposit and lending rates, as well as amounts of new loans. The figures were published in the September 2025 edition of Monetary and Financial Statistics.

The interest rate on household deposits with an agreed maturity of up to one year remained unchanged at 1.08%.

By contrast, the corresponding rate on deposits from non-financial corporations declined to 1.15%, from 1.21% in July.

Lending rates

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The interest rate on consumer credit decreased to 7.09%, compared with 7.40% in the previous month.

The rate on loans for house purchase rose slightly to 3.91%, from 3.87%. The CBC noted that the housing loan portfolio includes different loan types, such as loans for primary residences and holiday homes, which carry varying risks and rates, and this mix affects the weighted average independently of banks’ pricing.

For loans to non-financial corporations, the rate for amounts up to pound 1 million fell to 4.19% (from 4.29%), while the rate for loans over pound 1 million registered a marginal increase to 4.30% (from 4.29%).

New loans

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Pure new loans amounted to pound 245.5 million in August (from a total of pound 420.4 million), compared with pound 445.3 million in July (from a total of pound 743.5 million).

Pure new consumer loans decreased to pound 20.4 million (from a total of pound 21.4 million), compared with pound 24.9 million in July (from a total of pound 26.8 million).

Pure new housing loans fell to pound 96.3 million (from a total of pound 144.1 million), compared with pound 125.1 million in July (from a total of pound 185.9 million).

Pure new loans to non-financial corporations up to pound 1 million dropped to pound 38.1 million (from a total of pound 52.6 million), compared with pound 57.3 million in July (from a total of pound 86.9 million).

Pure new loans to non-financial corporations over pound 1 million decreased sharply to pound 83.9 million (from a total of pound 190.6 million), compared with pound 230.9 million in July (from a total of pound 425.4 million).

It is noted that pure new loans include only new loan contracts, while total new loans also cover renegotiated contracts during the reference month.

Euro area comparison

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Loan interest rates in Cyprus remain close to the euro area median. In August 2025, the interest rate on outstanding household loans stood at 3.98%, compared with 3.95% in the euro area.

For non-financial corporations, the corresponding rate in Cyprus was 4.26%, versus 3.78% in the euro area.

State budget maintains resilience of economy, FinMin says while presenting it to House President

The 2026 state budget is a growth budget and continues to maintain the resilience of the economy, Finance Minister Makis Keravnos said on Thursday presenting the budget to President of the House of Representatives Annita Demetriou.

The House President noted the importance of the budget having surplus and growth and added that the debate in Parliament begins on October 13.

“It is a growth budget, which continues to maintain the resilience of our economy with the necessary surpluses so that we can reduce public debt, release the potential and strength of the economy, and be able to offer more development, more social policy and more security for the citizens of our country,” the Finance Minister stressed.

Demetriou expressed satisfaction for the fact that the Minister gives emphasis on social policy adding that the Parliament supports vulnerable groups of the society as priority.

The 2026 budget amounts to pound 10.7 billion, excluding amortization expenses. Revenue for 2026 is estimated at a total of pound 12,681,631,000, while expenses are estimated at pound 10,779,960,000.

There is an additional pound 2,274,500,000 for loan repayments, as well as pound 665,200,000 for interest. The total amount of expenses amounts to pound 13,719,660,000.

The Minister of Finance said that since 2024 the state budget is prepared under the new economic governance decided by the European Commission and added that Cyprus as an EU member state “follows these rules faithfully so that we can give what we have to, to the society, the country and our citizens, in this difficult time of conflicts in our region and with the ongoing war in Ukraine”.

He also stressed that all our actions and decisions take into consideration the national problem of Cyprus until the country is reunited.

Meanwhile, replying to a question, the Finance Minister expressed confidence that, despite the Parliament’s workload, “through good cooperation and good understandings” the tax reform will be approved by the Parliament in a timely manner so that it is implemented by the first of January 2026.

Cyprus President holds bilateral meetings in Denmark, including with Zelensky

President of the Republic Nikos Christodoulides held on Thursday, in Denmark, a series of important meetings with heads of state or government in view of the Cyprus Presidency of the Council of the EU, Deputy Minister for European Affairs Marilena Raouna said.

According to a press release by the Presidency, Raouna, who is accompanying the President of the Republic in Denmark, said that the President of Ukraine was among the leaders and that it was agreed that President Christodoulides would pay a visit to the country in December.

She said that on the sidelines of the European Political Community Summit held today in Copenhagen, President Christodoulides held a series of important bilateral meetings requested by our partners in view of the Cyprus Presidency of the Council of the EU that will begin in January.

This afternoon, she said, a meeting was held between President Christodoulides and President of Ukraine Volodymyr Zelensky, during which they discussed the latest developments in the efforts to end the war and particular the issues of guarantees and security for Ukraine.

During the meeting, Raouna said, Cyprus expressed its support to Ukraine as well as its commitment to work during the Cyprus EU Presidency to promote the accession negotiations.

It was also agreed that President Christodoulides would pay a visit to Ukraine in December, in view of the Cyprus Presidency.

The President of the Republic also had a meeting with the Prime Minister of Denmark, during which they reviewed the progress made during the Danish Presidency on important issues that the Republic of Cyprus will have to take over, such as the crucial negotiations and the EU’s Multiannual Financial Framework, as well as issues related to migration.

The Deputy Minister noted that there are currently important legislative proposals before the Council regarding the return of asylum seekers which the Republic of Cyprus will negotiate.

The President of the Republic also met with the President of Moldova, who expressed her intention to visit Cyprus in November, in view of the Cyprus Presidency.

President Christodoulides also met with the President of Switzerland, since the Cyprus Presidency is expected to complete the EU-Switzerland package of agreements. Finally, the President met with Prince Albert of Monaco.

We have an obligation to constantly strengthen our defence, Spokesperson says

We have an obligation, as a semi-occupied country, to constantly strengthen our defence, Government Spokesperson, Konstantinos Letymbiotis, said on Thursday, in Nicosia.

Asked, during a media briefing at the Presidential Palace to comment on statements by Turkish Cypriot leader Ersin Tatar on the Republic of Cyprus’ armament programme, following Wednesday’s military parade for the anniversary of the Independence of the Republic of Cyprus, the Spokesperson said that all the actions the government has been taking, ‘regarding the defence of our country are aimed at exactly what I have described, the defence of our country.’ ‘A country which, let us remind Mr Tatar and Turkey, has been experiencing the tragic consequences of a barbaric invasion and an illegal occupation for 51 years. A country where 37% of its territory is under occupation, where 30,000 Turkish soldiers are illegally in our country and where over 160,000 Greek Cypriots are refugees in their own homeland’, he added.

What we are doing, he said, ‘is to strengthen, to further shield our country’s defence, to strengthen the deterrence of our country, a member state of the European Union’, in cooperation and full coordination ‘with our large European family, utilising programmes such as SAFE, with funds exceeding one billion euros, precisely because we have an obligation, especially as a semi-occupied homeland, to constantly shield our defence’, he said.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third. Repeated rounds of UN-led peace talks have so far failed to yield results. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended inconclusively.

HAITI-SECURITY-UN high commissioner for human rights warns Haiti has reached ‘boiling point’

The United Nations High Commissioner for Human Rights, Volker Trk, Thursday warned that the human rights situation in Haiti has reached a boiling point and that violence and human rights violations and abuses have escalated and intensified since his last visit to the French-speaking Caribbean Community (CARICOM) country.

In an address to the Human Rights Council on the situation in Haiti, Trk, said he welcomed the decision of the United Nations Security Council to strengthen the Kenya-led Multinational Security Support (MSS) mission by transitioning to the Gang Suppression Force (GSF) saying ‘this is a strong signal of international support for the Haitian people.

United Nations High Commissioner for Human Rights, Volker Trk

‘International commitment and backing for this are urgent. Without them, the worst may be yet to come for Haiti and the broader region. More than 16,000 people have been killed and some 7,000 people injured in armed violence since 1 January 2022, when we began our monitoring on gang related violence,’ Trk told the Council.

He said, currently, gangs are spreading fear beyond the capital, Port-au-Prince, into nearby regions, including in the Lower Artibonite and in the Centre department and that this violence is fertile ground for further cross-border arms, drugs, and human trafficking, which threaten to destabilize the wider sub-region.

He said an estimated 270,000 to 500,000 firearms are circulating illegally in Haiti, with most weapons in the hands of gangs.

‘Gangs are killing and kidnapping people, extorting them at illegal checkpoints, hijacking trucks transporting food and other supplies, and burning and destroying homes, hospitals, schools, and public buildings.

‘They are committing widespread sexual violence to assert dominance and territorial influence, and displace people. The gangs kidnap women and girls, and subject them to extreme brutality, including killing and sexual exploitation,’ Trk added.

The UN human rights Commissioner said that his office is working with the authorities to step up investigations and prosecutions, including through Specialized Judicial Units and is urging the Council’s ‘strong support for programmes to protect survivors of sexual violence.

‘The humanitarian toll is staggering. Half of Haiti’s population – six million people, including 3.3 million children – need humanitarian aid. Some 1.3 million people, half of them children, have fled their homes. Haiti is now among the five global food insecurity hotspots of highest concern.’

Trk said he remains deeply worried about the fate of children in Haiti, noting that UNICEF estimates that one in seven children is out of school, and almost one million more are at risk of dropping out.

‘More children are being subjected to trafficking, exploitation and forced recruitment by the gangs. They are used as couriers, lookouts, or weapons carriers, and are sometimes coerced into combat roles against rival gangs, security forces and so-called self-defense groups.

‘We can only imagine the long-term impact, for the children of Haiti, and for society as a whole. In a glimmer of hope, in July, the authorities opened the first Transit and Orientation Centre in Port-au-Prince, to provide temporary shelter and reintegration support for children formerly associated with armed gangs. We need more such measures.’

Trk said that he is also concerned that State law enforcement have used ‘unnecessary and disproportionate lethal force’ in their operations against the gangs.

‘For example, operations by law enforcement account for more than half of killings and injuries so far this year – a steep increase compared to 2024. Almost one third of people killed or injured were hit by stray bullets,’ Trk sid, noting that specialized police units have summarily executed 174 people this year, for alleged affiliation with gangs.

He said that since March, the government has stepped up its use of explosive drones in its anti-gang operations in Port-au-Prince.

‘As of mid-September, drone strikes have killed at least 559 people, including 11 children. Most of these drone strikes are likely unlawful under international human rights law,’ Trk said, adding that ‘the use of force by police and security personnel needs to respect the principles of legality, necessity, proportionality, non-discrimination, precaution, and accountability.

‘I urge the authorities to investigate all allegations of unnecessary and disproportionate use of force, and ensure perpetrators, regardless of affiliation, are brought to justice. It is deeply worrying that so-called self-defence groups and spontaneous crowds of people have killed more than 500 alleged gang members this year – with the alleged support of police officers.’

Trk said that a spiral of violence between gang members, the population, and the security forces will only add to people’s feelings of insecurity.

‘Efforts to restore security need to be rooted in human rights and go hand in hand with rebuilding the rule of law and justice in the country.The authorities, with the support of the international community, urgently need to root out impunity and corruption, including within state institutions.

‘It is also crucial to take meaningful steps to bring perpetrators to account for the grave human rights violations and abuses that have been committed,’ Trk added.

He said in addition, work needs to begin to address the country’s pervasive inequalities and poverty.

‘The people of Haiti need the unwavering attention and support of the international community. All States need to implement the Security Council’s arms embargo in full, to prevent the illicit trafficking of firearms and ammunition into Haiti. Enforcement at borders is absolutely crucial.

‘I urge States to support the Gang Suppression Force with sufficient funding and personnel. It is vital to ensure that robust human rights safeguards underpin its work. My Office is ready to continue providing advice on the conduct of operations in line with international human rights law. We can – and must – turn this situation around for the people of Haiti,’ Trk said.

Meanwhile, the World Food Programme (WFP) warned Thursday that rising violence by gangs in Haiti’s capital is restricting humanitarian access and pushing families deeper into hunger as extreme funding shortfalls force WFP to slash rations and suspend programmes.

WFP said that more farmers are cut off from markets, further straining already fragile food systems and pushing food prices even higher.

Funding shortfalls have also forced WFP to suspend hot meals for newly displaced families and to slash food rations in half. And for the first time, the lack of resources has prevented WFP from prepositioning food stocks to respond to a natural disaster during the Atlantic hurricane season.

Despite restricted access and extreme insecurity, WFP said it has reached more than two million people with assistance since January.

Efforts to support longer term food security and reduce dependence on aid are also continuing as WFP works with the government to provide school meals for 600,000 Haitian students. Alongside this, WFP has also been able to launch targeted community infrastructure projects, including in areas controlled by gangs, to restore irrigation systems and boost local food production.’

UN Deputy spokesman, Farhan Haq, said Haiti is the only country in the Americas, and one of only five countries globally, with people facing catastrophic (IPC5) levels of hunger, which is equivalent to famine-like conditions. It is also one of the world’s most severe food crises with 5.7 million people facing acute food insecurity.

He said the WFP requires US$139 million for the next 12 months to reach the country’s most vulnerable families.

BERMUDA-WEATHER-Hurricane Imelda moving away from Bermuda

Hurricane Imelda is moving quickly away from Bermuda on Thursday and is expected to become extra tropical later during the day, the Miami-based National Hurricane Center (NHC) said Thursday.

It said that the storm, with maximum sustained winds of 85 miles per hour (mph) was about 170 miles east north east of the British Overseas Territory and that it is moving towards the the east-northeast near 30 mph.

The Meteorological Service of Bermuda has changed the Hurricane Warning for Bermuda to a Tropical Storm Warning, meaning that tropical storm conditions are expected during the next few hours.

Bermudian authorities are reporting that the worst of Hurricane Imelda has passed, but hurricane-force winds and gusts abound and residents are advised to stay indoors until the Emergency Measures Organisation (EMO) has given the green light.

The NHC said that Hurricane Imelda is expected to continue on a northeastward motion on Friday and Saturday and that ‘the core of Imelda will move farther away from Bermuda during the next several hours.

‘Maximum sustained winds are near 85 mph with higher gusts. Imelda is expected to become an extratropical low later today, with gradual weakening forecast for the next several days.’

It said that swells generated by Imelda are affecting the Bahamas, Bermuda, and much of the U.S. East Coast.

‘Swells from Imelda will spread toward the Greater Antilles and northern Leeward Islands on Friday and continue through the weekend. These swells are likely to cause ife-threatening surf and rip current conditions,’ the NHC warned.

GUYANA-ENERGY-Government wants to market its own crude oil

The Guyana government Thursday said that it will be moving towards selling its own crude oil and that it would actively support the local private sector in building the technical and human resource capacity needed to effectively participate in that business.

‘I will be working with the local, private sector and international partners to ensure that we develop our capability and capacity in crude oil trading. We must be able to trade our crude oil from Guyana with the infrastructure, with the human President Irfaan Ali told the Georgetown Chamber of Commerce and Industry (GCCI) breakfast forum on ‘Energy Insights’.

‘The real wealth of Guyana will not only flow from beneath the sea, but from creativity, from the creativity of our people on land. And this is why the business community must ask itself: ‘will we be mere suppliers to an oil industry? Or will we be creators of industries of our own?’,’ he told members of the business community gathered at the event.

‘We have to get those who have already done it for other countries to work with us in transferring the knowledge.maybe to enter a partnership for the next three, four, five years until we get the experience to do it on our own. These are the bold decisions that we must embrace. These are the bold ideas that will take us from where we are to where we want to be,’ Ali told the private sector grouping.

Ali said crude oil trading would create ‘enormous opportunities’ for Guyana, and so in order to get into the business in the shortest possible time, an experienced crude oil trader would be contracted to do so and share its expertise.

Through a competitive bidding system, Guyana hires a crude marketing firm for its 50 per cent share of the profit oil from the Stabroek Block. British firms BB Energy Trading Limited and JE Energy have been contracted by the Guyana Government to market crude oil from the Liza Unity, Prosperity, and Destiny FPSOs.

Both companies had previously marketed Guyana’s oil in 2023-2024 and President Ali said Ali, these services can be provided by the local private sector.

ExxonMobil and its partners are producing approximately 650,000 barrels of oil per day from the Stabroek Block offshore Guyana. With the recent successful startup of a fourth FPSO, the ONE GUYANA, the company anticipates growing production to more than 900,000 barrels of oil per day by the end of the year.

President Ali’s announcement followed a statement by ExxonMobil Guyana’s Production Manager, Huzefa Ali, who told the breakfast that the Floating Production Storage and Offloading (FPSO) vessel, One Guyana, which is pumping oil from Yellowtail, would reach name-plate capacity of 250,000 barrels per day in another month. That vessel began production in August.

The ExxonMobil official said that efforts were underway to bring the eight project, Longtail, on board and bearing a significant natural gas deposit, ExxonMobil said Longtail could potentially supply that hydrocarbon for a second power plant, an alumina plant, a fertiliser plant and a data center in Berbice.

‘I will highlight project number eight, which we expect to be Longtail is also well progressed in terms of regulatory reviews and discussions for further discussion,’ Ali said, adding that ExxonMobil was advancing plans to determine the actual amount of gas that is deposited in Longtail.

‘We are well on our way to appraise those resources and then also take that to the next step, which is consider what is the most valuable development concept that brings the highest value for the people of Guyana, for the Government of Guyana, and for the other stakeholders,’ he said.

Meanwhile, President Ali has underscored the importance of establishing a modern stock exchange as part of broader efforts to modernise the country’s financial sector.

‘The creation of a modern stock exchange and options for capital mobilisation. Many people are speaking about diaspora bonds and all of this. All of these options will be examined,’ he said, adding that the government is also exploring the establishment of a junior stock exchange, which is a type of stock market specifically designed for smaller or emerging companies to raise capital, often under less stringent regulatory requirements than those of a main or senior stock exchange.

Ali said that the private sector must play a crucial role in ensuring that wealth, opportunity and commerce flow into the economy and that the government will create a favourable environment by adopting effective policy frameworks, infrastructure, and financial sector modernisation.

‘Someone asked me recently if Guyanese businesses are ready for the oil economy. I told them, well, we are ready in spirit. But readiness is more than dreams. It is about skills, partnerships, and wealth creation. Otherwise, the opportunities will come and pass us by. We must prepare, not just dream,’ Ali said, adding that by 2030, Guyana should have a diversified economy, powered by modern infrastructure, technology, knowledge, and innovation, not just oil.

Oil is temporary. But sustainability is forever. You must use oil to build for the future, not deny the future to spend oil,’ he said