Northern Cyprus Inflation January 2026 Hits 39.4% Annual Rate

Northern Cyprus Inflation January 2026 Hits 39.4% Annual Rate

The Statistical Service has released its latest Consumer Price Index figures, showing inflation increased by 1.97% in January compared with the previous month. The same rise was recorded compared with December of the previous year, bringing the annual inflation rate to 39.40%.

The data reflects continued cost pressures across multiple sectors, with communications and health-related expenses seeing particularly sharp increases.

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Where Prices Rose the Most

The communication sector recorded the largest monthly increase, with prices rising 11.40%. Other notable increases were observed across several everyday spending categories:

• Health — +9.59%

• Miscellaneous goods and services — +6.85%

• Recreation and culture — +6.13%

• Housing, utilities and fuel — +4.85%

• Food and non-alcoholic beverages — +4.45%

• Transport — +3.08%

• Furniture and household services — +2.29%

• Education — +1.65%

• Clothing and footwear — +0.88%

• Alcohol and tobacco — +0.33%

These increases illustrate broad inflationary pressure across essential living costs, particularly in healthcare, utilities, and food.

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Sector Showing Price Relief

In contrast, the restaurants and hotels category saw prices fall sharply by 16.96%, offering some offset against increases elsewhere. Seasonal demand patterns and pricing adjustments often contribute to volatility in this sector.

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Consumer Basket Trends

Out of 504 monitored items in the consumer basket:

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• Prices increased for a significant majority of goods

• 114 items recorded price decreases

This indicates inflation was widespread rather than concentrated in a few isolated products.

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Biggest Individual Price Changes

Largest Increases

• Eggplants — +95.87%

• Cauliflower — +91.30%

• Arugula — +80.41%

Largest Decreases

• National Lottery ticket — −50%

• Onion — −42.44%

• Artichoke — −42%

Vegetable price volatility reflects seasonal supply fluctuations, while non-food reductions were driven by pricing adjustments in discretionary spending items.

What This Means for Residents

While the monthly rise appears modest, the annual rate nearing 40% highlights ongoing cost-of-living pressure. Housing, food, and health costs — core components of household expenditure — continue to trend upward, suggesting residents and businesses alike may need to factor sustained inflation into budgeting and planning.

Monitoring upcoming CPI releases will be important to determine whether price growth stabilises or remains elevated as the year progresses.