Cyprus Posts EU’s Sharpest Monthly Drop in Industrial Producer Prices in January

Industrial producer prices in Cyprus registered the steepest monthly decline across the European Union in January 2026, according to newly released estimates from Eurostat, even as producer prices climbed across both the euro area and the broader EU during the same period.

The EU’s statistical office reported that industrial producer prices rose by 0.7 per cent in the euro area and by 0.8 per cent across the EU in January 2026 when compared with December 2025. This marked a reversal from the previous month, when prices declined by 0.3 per cent in the euro area and by 0.4 per cent across the EU in December 2025.

On a year-on-year basis, however, the broader trend remained downward. Compared with January 2025, industrial producer prices fell by 2.1 per cent in the euro area and by 1.9 per cent throughout the EU.

Against this backdrop, Cyprus stood out for recording the most pronounced monthly decline among member states with available data. Producer prices on the island dropped by 0.9 per cent in January 2026, making it the largest monthly fall within the bloc.

The only other notable decreases during the month were reported in the Czech Republic, where prices slipped by 0.7 per cent, and in Germany and Slovakia, both of which recorded declines of 0.6 per cent.

In contrast, several countries experienced sharp monthly increases. The most significant rise occurred in Estonia, where producer prices surged by 13.7 per cent. This was followed by Bulgaria with a 7.1 per cent increase and Finland, where prices climbed by 6.9 per cent.

Within the euro area, price developments varied across the main industrial categories.

Intermediate goods prices increased by 1.0 per cent during the month, while energy prices rose by 1.3 per cent. Capital goods also recorded an increase of 0.6 per cent, and durable consumer goods climbed by 0.8 per cent. By contrast, prices for non-durable consumer goods edged down by 0.2 per cent.

When energy is excluded, the overall price level for industry in the euro area still showed a monthly increase of 0.6 per cent.

Across the EU as a whole, the pattern was broadly similar but slightly more pronounced. Prices for intermediate goods rose by 0.9 per cent, while energy prices increased by 1.5 per cent. Capital goods recorded a 0.5 per cent rise, and durable consumer goods increased by 0.8 per cent. Meanwhile, non-durable consumer goods prices again declined by 0.2 per cent.

Excluding energy from the calculation, prices across the EU’s industrial sector increased by 0.5 per cent overall.

On an annual basis within the euro area, the data revealed mixed developments across sectors. Intermediate goods prices rose by 1.5 per cent in January 2026 compared with January 2025, while energy prices fell sharply by 8.9 per cent over the same period.

Capital goods prices increased by 1.6 per cent year-on-year, durable consumer goods rose by 2.2 per cent, and non-durable consumer goods recorded a more modest increase of 0.5 per cent. When energy is excluded, total industry prices in the euro area rose by 1.2 per cent compared with a year earlier.

Similar trends were observed across the broader EU. Intermediate goods prices rose by 1.2 per cent year-on-year, while energy prices declined by 7.9 per cent.

Capital goods prices increased by 1.4 per cent, durable consumer goods prices climbed by 2.0 per cent, and non-durable consumer goods rose by 0.5 per cent. Excluding energy, total industrial prices across the EU recorded a 1.1 per cent annual increase.

Among individual member states, the largest annual decreases in industrial producer prices were recorded in Ireland, where prices dropped by 6.9 per cent, followed by Luxembourg with a decline of 5.2 per cent and Denmark, which registered a fall of 3.5 per cent.

At the other end of the spectrum, the strongest annual increases were seen in Estonia, where prices rose by 11.9 per cent, closely followed by Bulgaria at 11.7 per cent and Romania, which recorded a 9.3 per cent increase.

The latest figures illustrate the uneven price pressures currently shaping industrial sectors across Europe. While producer prices across the EU generally trended upward on a monthly basis in January 2026, Cyprus moved in the opposite direction, highlighting the diverging dynamics affecting individual member states as energy costs continue to play a significant role in determining broader price trends.

By fLEXI tEAM