Cyprus tourism revenue fell by 3.4 per cent year-on-year in August to €562 million, as fewer tourists and shorter stays weighed on earnings despite an increase in average daily spending, according to figures released by the statistical service (Cystat) on Friday.

Revenue stood at €581.8m in August 2025, meaning the sector earned €19.8m less than a year earlier, as tourist arrivals declined from 602,026 to 581,880.

The latest figures also show that tourism revenue for the first eight months of 2026 reached €2.32 billion, down 6.2 per cent from €2.47bn during the corresponding period of 2025.

The August decline follows a stronger performance in July, when tourism revenue increased by 4.6 per cent to €536.5m, supported by higher visitor spending despite slightly lower arrivals.

In August, however, average expenditure per tourist remained almost unchanged at €965.81, compared with €966.41 a year earlier.

Although the average length of stay declined from 9.2 days to 8.9 days, tourists spent more each day, with average daily expenditure increasing from €105.04 to €108.52.

The United Kingdom remained Cyprus’ largest tourist market, accounting for 30.5 per cent of total arrivals, followed by Israel with 23.3 per cent and Poland with 6.3 per cent.

British arrivals fell from 193,091 in August 2025 to 177,603 this year, while the average length of stay shortened from 10.6 days to 10.2 days.

Spending by British visitors also declined, with average expenditure per person falling from €1,195.02 to €1,062.12, while daily spending decreased from €112.74 to €104.13.

Israel, meanwhile, recorded a substantial increase in arrivals, rising from 105,597 to 135,628, strengthening its position as Cyprus’ second-largest source of tourists.

Israeli visitors stayed for an average of five days, compared with 5.2 days a year earlier, but their expenditure increased considerably.

Average spending per person rose from €792.69 to €892.20, while daily expenditure climbed from €152.44 to €178.44, considerably higher than the average for the tourism market as a whole.

Poland remained the third-largest market, although arrivals declined from 41,844 to 36,622.

Polish tourists stayed slightly longer, with the average visit increasing from 7.7 days to 7.9 days, but spending per person fell from €740.38 to €729.93. Daily expenditure also declined from €96.15 to €92.40.

German arrivals decreased from 27,665 to 25,823, while the average stay shortened from 10.5 days to 10.2 days.

Despite this, German visitors spent more, with average expenditure per person increasing from €987.97 to €1,084.18 and daily spending rising from €94.09 to €106.29.

Sweden followed a similar pattern, with arrivals declining from 18,636 to 17,441, although the average stay increased from 8.4 days to 8.8 days.

Average spending among Swedish tourists rose from €876.21 to €1,024.42 per person, while daily expenditure increased from €104.31 to €116.41.

Danish arrivals also fell slightly, from 9,984 to 9,733, while visitors shortened their stays from 8.8 days to 7.7 days.

Their average expenditure per person declined from €836.78 to €780.74, although daily spending increased from €95.09 to €101.39.

Norwegian arrivals moved in the opposite direction, increasing marginally from 7,896 to 8,006. However, Cystat did not publish reliable expenditure or length-of-stay figures for this market.

Arrivals from Greece declined from 15,294 to 13,810, with the average stay falling from 10.5 days to 10.2 days.

Greek visitors also spent less, with average expenditure per person decreasing from €484.94 to €466.29, while daily spending slipped from €46.18 to €45.71.

Visitors from the US recorded one of the most striking increases in spending, with average expenditure per person almost doubling from €849.70 to €1,691.60.

American arrivals increased from 8,597 to 9,665, while the average length of stay rose sharply from 12.2 days to 16.7 days.

Daily expenditure also increased substantially, from €69.65 to €101.29, with the longer stays contributing to the considerable increase in spending per visitor.

Austrian arrivals fell from 11,935 to 10,389, although visitors stayed considerably longer, with the average duration increasing from 7.4 days to 9.1 days.

Average expenditure among Austrian tourists rose from €899.80 to €1,116.79 per person, while daily spending increased slightly from €121.59 to €122.72.

Swiss arrivals also declined, from 7,277 to 6,739, but the average length of stay increased from 8.9 days to 9.2 days.

Swiss visitors remained among the highest-spending tourists, with average expenditure per person rising from €1,254.87 to €1,423.77, while daily spending increased from €141 to €154.76.

Arrivals from the Netherlands fell from 7,672 to 6,331, although Dutch visitors extended their average stay from 9.7 days to 10.9 days.

Despite spending more time in Cyprus, their average expenditure per person declined from €1,103.80 to €1,062.19, while daily spending fell from €113.79 to €97.45.

France recorded one of the sharpest declines among Cyprus’ main European tourism markets, with arrivals falling from 15,663 to 8,453.

French tourists nevertheless stayed longer, with the average visit increasing from 9.4 days to 11.2 days.

Their average expenditure per person rose from €979.40 to €1,034.62, although daily spending declined from €104.19 to €92.38.

Belgian arrivals, meanwhile, increased from 3,342 to 4,475, accompanied by a substantial rise in the average length of stay from 10.2 days to 13.3 days.

Average expenditure by Belgian tourists increased from €918.56 to €1,064.54 per person, although daily spending fell from €90.05 to €80.04.

Finnish arrivals declined from 4,018 to 3,431, with tourists spending an average of €1,105.20 per person and €120.13 per day, based on an average stay of 9.2 days.

Italian arrivals also fell sharply, dropping from 11,173 to 6,282, while the average stay shortened from 8.5 days to 8.1 days.

However, Italian tourists increased their average expenditure from €773.38 to €928.95 per person, with daily spending rising from €90.99 to €114.69.

Finally, arrivals from Lebanon declined from 5,745 to 5,085.

The cumulative figures show that the sector has yet to recover the revenue lost during the earlier months of 2026, with tourism earnings for January to August remaining €153.1m below the corresponding period last year.

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Almost £100bn has been wiped off the tech firm overnight

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Cyprus’ unemployment rate remained at 4 per cent in September 2026, unchanged from August and below the 4.2 per cent recorded a year earlier, while youth unemployment stayed at 11.3 per cent, according to figures published by Eurostat on Friday.

The number of unemployed people in Cyprus stood at approximately 21,000 in September, down from around 22,000 in September 2025, as the labour market continued to perform better than the European Union average.

The figures also showed that youth unemployment in Cyprus declined over the past year, with the number of unemployed people aged under 25 falling from approximately 4,000 in September 2025 to 3,000 in June 2026, where it remained through September.

Across the EU, however, unemployment increased over the year, with the overall rate reaching 6.2 per cent in September, compared with 6 per cent in the same month of 2025.

The euro area unemployment rate stood at 6.5 per cent, unchanged from August but higher than the 6.3 per cent recorded a year earlier.

Eurostat, the statistical office of the European Union, estimated that 13.773 million people were unemployed across the EU in September, including 11.555 million in the euro area.

Compared with August, the number of unemployed people increased by 105,000 across the EU and by 122,000 in the euro area.

On an annual basis, unemployment rose by 471,000 across the EU and by 420,000 in the euro area.

Cyprus unemployment remains below EU average

Cyprus’ unemployment rate declined from 4.2 per cent in September 2025 to 3.8 per cent in June 2026, before edging up to 3.9 per cent in July and reaching 4 per cent in August, where it remained in September.

The number of unemployed people followed a similar pattern, falling from approximately 22,000 in September 2025 to 21,000 in June and July 2026.

The figure increased to around 22,000 in August before returning to approximately 21,000 in September.

The latest figures place Cyprus’ unemployment rate 2.2 percentage points below the EU average and 2.5 percentage points below the euro area rate.

While the EU and euro area have experienced an increase in unemployment over the past year, Cyprus’ rate has declined, indicating comparatively favourable labour market conditions.

Youth unemployment remains lower in Cyprus

The unemployment rate among people aged under 25 in Cyprus stood at 11.3 per cent in September 2026, unchanged from July and August and below the 12.9 per cent recorded in September 2025.

The rate had fallen to 11.8 per cent by June 2026 before declining further to 11.3 per cent in July.

The number of unemployed young people also decreased over the year, from approximately 4,000 in September 2025 to 3,000 in June 2026, remaining at that level through September.

The figures compare favourably with the wider European picture, where youth unemployment continued to rise.

Across the EU, the youth unemployment rate reached 15.5 per cent in September, up from 15.4 per cent in August.

In the euro area, the rate increased to 15.4 per cent from 15.1 per cent in the previous month.

Eurostat estimated that 3.022 million people aged under 25 were unemployed across the EU in September, including 2.469 million in the euro area.

Compared with August, youth unemployment increased by 44,000 across the EU and by 69,000 in the euro area.

Compared with September 2025, the number of unemployed young people rose by 45,000 in the EU and by 80,000 in the euro area.

Unemployment among women and men

The unemployment rate for men in Cyprus stood at 3.7 per cent in September 2026, unchanged from July and August, after declining from 4 per cent in September 2025 to 3.6 per cent in June 2026.

Among women, the rate reached 4.3 per cent in September, down from 4.4 per cent a year earlier.

Female unemployment had fallen to 4.1 per cent in June 2026 before increasing to 4.2 per cent in July and 4.4 per cent in August, then edging down in September.

The figures show that the unemployment rate for women remained higher than that for men in Cyprus, although the difference narrowed slightly in September.

Across the EU, the unemployment rate for women stood at 6.4 per cent in September, while the rate for men was 6 per cent, with both unchanged from the previous month.

In the euro area, female unemployment remained at 6.7 per cent, while the male rate increased to 6.4 per cent from 6.3 per cent in August.

European unemployment rises over the year

The wider European figures showed a gradual increase in unemployment compared with September 2025, despite rates remaining stable between August and September 2026.

In the euro area, the unemployment rate rose from 6.3 per cent in September 2025 to 6.4 per cent in June 2026, before reaching 6.5 per cent in July and remaining at that level through September.

The number of unemployed people in the euro area increased from 11.135 million in September 2025 to 11.555 million in September 2026.

Across the EU, the unemployment rate increased from 6 per cent in September 2025 to 6.2 per cent in June 2026, remaining at 6.2 per cent through September.

The total number of unemployed people across the bloc rose from 13.302 million to 13.773 million over the same period.

The latest figures therefore highlight a contrast between Cyprus, where overall unemployment and youth joblessness remained below their levels a year earlier, and the wider EU, where both the number of unemployed people and the overall rate increased.

Brussels (Brussels Morning Newspaper) October 30, 2026 – The Seafood Ireland Alliance hosted key industry representatives, European lawmakers, and institution officials in Brussels on 14 October to mark Ireland’s presidency of the Council of the European Union. The … Read more

Household electricity prices in Cyprus fell to €0.26 per kilowatt-hour in the first half of 2026, according to Eurostat data, easing from their energy-crisis peak but remaining significantly above pre-crisis levels as electricity costs continue to weigh on consumers.

The latest figures show that prices, including all taxes and levies, have declined steadily since reaching €0.37 per kilowatt-hour in the first half of 2023, although households are still paying considerably more than they did before the energy crisis.

When adjusted for differences in purchasing power, Cyprus recorded 29.9 purchasing power standard (PPS) units per 100 kilowatt-hours in the first half of 2026, providing an indication of the relative burden of electricity costs on households.

Across the European Union, average household electricity prices fell by 2.2 per cent in the first half of 2026, declining to €0.28 per kilowatt-hour from €0.29 in the second half of 2025.

Despite the decrease, prices remained well above levels recorded before the 2022 energy crisis, indicating that households continued to face higher electricity costs than before the energy market turmoil.

Taxes and levies also declined slightly as a proportion of household electricity bills, falling by 0.5 percentage points, from 28.9 per cent in the second half of 2025 to 28.4 per cent in the first half of 2026.

Cyprus electricity prices peaked in 2023

Eurostat data show that household electricity prices in Cyprus followed a relatively stable pattern between 2015 and 2020, before surging during the energy crisis and subsequently easing.

During the initial period, prices fluctuated between €0.15 per kilowatt-hour in the first half of 2016 and €0.22 in the second half of 2019, before falling to €0.16 in the second half of 2020.

The subsequent energy crisis brought a sharp increase in household electricity costs, with prices reaching €0.37 per kilowatt-hour in the first half of 2023, more than double the level recorded in late 2020.

Prices then began to ease, declining to €0.32 per kilowatt-hour in the first half of 2024 before continuing their gradual downward trajectory.

By the first half of 2026, the price had fallen to €0.26 per kilowatt-hour, representing a substantial reduction from the 2023 peak but remaining well above the levels recorded before 2021.

The trend highlights the persistence of the energy crisis’ impact on household electricity bills, even as prices have retreated from their highest levels.

Ireland records highest electricity prices

Ireland recorded the highest household electricity prices in the EU during the first half of 2026, at €0.39 per kilowatt-hour, followed by Germany and Belgium, where prices stood at €0.36 per kilowatt-hour in both countries.

Six member states recorded household electricity prices exceeding €0.30 per kilowatt-hour, while five countries reported prices below €0.20.

The lowest nominal prices were recorded in Hungary, at €0.11 per kilowatt-hour, followed by Malta and Bulgaria, where households paid €0.13 per kilowatt-hour.

However, comparisons based solely on euros do not fully reflect the financial burden electricity bills place on households, as purchasing power and general price levels differ between countries.

When electricity prices were adjusted using the purchasing power standard (PPS), Romania recorded the highest costs, at 46.9 units per 100 kilowatt-hours, followed by Poland at 41.1 and the Czech Republic at 34.3.

Cyprus recorded 29.9 PPS units per 100 kilowatt-hours, while the lowest purchasing-power-adjusted prices were observed in Malta, at 13.8, Hungary at 14.7 and Luxembourg at 15.5.

The PPS measure allows comparisons between countries by accounting for differences in purchasing power, offering a clearer indication of the relative cost of electricity for consumers.

Electricity prices move sharply in several countries

Although the EU average declined in the first half of 2026 compared with the second half of 2025, national trends varied considerably when prices were compared with the same period a year earlier.

Using comparisons in national currencies, Eurostat found that household electricity prices increased sharply in Romania, rising by 51.6 per cent compared with the first half of 2025.

Ireland recorded the second-largest increase, at 19.8 per cent, followed by Finland, where prices rose by 18.4 per cent.

In contrast, Denmark registered the largest decrease, with household electricity prices falling by 31.7 per cent, while Luxembourg recorded a decline of 24.1 per cent.

The figures illustrate the uneven evolution of electricity costs across Europe, despite the overall reduction in average EU prices during the first six months of 2026.

For Cyprus, the combination of the historical price trend and the latest purchasing-power-adjusted figures shows that, although household electricity costs have fallen considerably from their 2023 peak, prices remain elevated compared with the period before the energy crisis.

Cyprus’ tax-to-GDP ratio rose to 36.3 per cent in 2025 from 36 per cent a year earlier, according to Eurostat, as tax and social contribution revenues increased across most European Union member states.

The figures show that Cyprus remained below the EU average, where the overall tax-to-GDP ratio climbed to 40.7 per cent in 2025 from 40.2 per cent in 2024.

Across the euro area, the ratio increased more sharply, reaching 41.3 per cent, compared with 40.7 per cent in the previous year.

The tax-to-GDP ratio measures the combined revenue governments collect from taxes and net social contributions as a share of gross domestic product (GDP), providing an indication of the relative size of tax revenues in an economy.

In absolute terms, EU revenue from taxes and social contributions increased by €401 billion in 2025 to reach €7.68 trillion, compared with the previous year, Eurostat reported.

Despite the overall increase, significant differences remained between member states, reflecting variations in national tax systems, social contribution arrangements and the size of government revenue relative to economic output.

France recorded the highest tax-to-GDP ratio in the EU at 46 per cent, followed by Belgium at 44.7 per cent, Denmark at 44.3 per cent and Austria at 43.9 per cent.

At the other end of the scale, Ireland registered the lowest ratio at 22.7 per cent, followed by Romania at 29.3 per cent, Malta at 30.3 per cent and Bulgaria at 30.6 per cent.

Cyprus’ ratio of 36.3 per cent placed it below the EU and euro area averages, although its increase from 2024 indicated that tax and social contribution revenues had risen relative to the size of the economy.

Tax ratios rise across most EU countries

Eurostat said the tax-to-GDP ratio increased in 19 EU member states in 2025 compared with the previous year.

Germany recorded the largest increase, with its ratio rising from 40.3 per cent in 2024 to 41.4 per cent in 2025.

Malta followed, with an increase from 29.3 per cent to 30.3 per cent, while Spain’s ratio climbed from 37.2 per cent to 38.1 per cent.

In contrast, the ratio declined in eight member states, with the largest decreases recorded in Sweden and Latvia.

Sweden’s tax-to-GDP ratio fell from 41.8 per cent in 2024 to 41.2 per cent in 2025, while Latvia’s declined from 34.9 per cent to 34.2 per cent.

The figures underline the differing trends in government revenue across the bloc, with the overall EU and euro area ratios increasing despite reductions in several individual countries.

For Cyprus, the rise from 36 per cent to 36.3 per cent represented a comparatively modest increase, leaving the country’s ratio below the European averages in 2025.

ISLAMABAD: Short-term inflation rose to 11.32 per cent year-on-year in the week ending October 29, driven largely by perishable food products, according to official data released by the Pakistan Bureau of Statistics (PBS) on Friday.

The index, comprising 51 items whose prices are collected from 50 markets in 17 cities, is calculated weekly to track changes in the prices of essential commodities and services.

Short-term inflation has remained in double digits for several consecutive weeks, largely on the back of persistent increases in petroleum and diesel prices.

The data showed that of the 51 essential items monitored during the week, the prices of 15 commodities increased, while those of 12 items declined. Meanwhile, the prices of 24 items remained unchanged from the previous week.

The Sensitive Price Index (SPI), which tracks short-term inflation, decreased slightly by 0.35pc week-on-week, reflecting price fluctuations in both food and non-food items.

Unwilling to reduce the petroleum levy, the government has continued to raise petrol and diesel prices. The surge in energy costs is not only fuelling inflationary pressures but also indirectly boosting sales tax collections through higher prices of goods and services.

This is an example of cost-push inflation, in which rising energy costs lead to increases in food prices. As a result, households are facing mounting pressure from higher consumer prices.

The items that recorded the highest price increases over the previous week included tomatoes (34.91pc), potatoes (3.27pc), diesel (2.53pc), pulse gram (2.11pc), plain bread (1.29pc), onions (0.62pc), fresh milk (0.48pc), curd (0.46pc), vegetable ghee (0.29pc) and firewood (0.2pc).

The items that recorded week-on-week price declines included electricity charges for Q1 (3.92pc), chicken (2.95pc), eggs (2.81pc), wheat flour (0.83pc), LPG (0.73pc), bananas (0.71pc), rice IRRI-6/9 and masoor pulse (0.43pc each), petrol (0.39pc), sugar (0.35pc) and powdered milk (0.33pc).

On an annual basis, the items that recorded the highest price increases included LPG (106.86pc), electricity charges for Q1 (52.38pc), diesel (45.13pc), petrol (43.61pc), wheat flour (34.87pc), chicken (31.72pc), chilli powder (15.55pc), mutton (14.66pc), plain bread (12.26pc), beef (12.10pc), onions (8.99pc) and prepared tea (8.41pc).

In contrast, potato prices fell by 38.67pc, followed by tomatoes (27.99pc), eggs (26.70pc), sugar (25.21pc), powdered salt (14.86pc), gur (8.51pc), masoor pulse (8.37pc) and moong pulse (6.42pc).

Last week, short-term inflation rose to 11.85pc year-on-year, driven largely by higher wheat flour prices, according to data released by the PBS.

China’s Leapmotor is making a bigger push into Europe, with a clear ambition to bring advanced electric-car technology within reach of more drivers, without the hefty price tag often associated with it. And with the backing of automotive giant Stellantis, the relatively young manufacturer is already making considerable headway.

Founded in 2015, Leapmotor has built its business around technology, developing electric systems, advanced software and digital features while keeping prices competitive. According to the company, the thinking behind this approach is that modern technology should not be reserved for expensive cars, but should be something far more motorists can enjoy.

Its European ambitions received a considerable boost in 2023, when Stellantis invested in the Chinese carmaker, leading to the creation of Leapmotor International. The joint venture is 51 per cent owned by Stellantis and 49 per cent by Leapmotor, giving the brand access to an extensive European sales and after-sales support network.

That matters, particularly for a manufacturer still establishing its name in Europe. Buying a car from a relatively unfamiliar brand is one thing, but knowing there is an established network to provide servicing and support is just as important.

The company’s growth figures tell their own story. According to Leapmotor, more than 600,000 vehicles were sold worldwide in 2025, while total deliveries since its establishment have passed the one million mark. The brand is now present in more than 40 markets, with a global network approaching 1,700 sales and service locations.

European drivers were first introduced to Leapmotor through the compact electric T03 and the larger C10 SUV. Since then, the range has grown to include models such as the B10 and B05, giving customers more choice across different vehicle categories.

And for those who like the idea of electric driving but are not quite ready to rely entirely on battery power, Leapmotor has also developed Range Extender technology. It offers another option for motorists considering the switch, rather than limiting them to fully electric models.

The company’s ties with Europe have been growing in other ways, too. In March 2026, Leapmotor opened its first Innovation Centre outside China, in Munich, bringing the manufacturer closer to European design and engineering expertise.

For a company founded just over a decade ago, the expansion has been remarkably quick. Its approach brings together smart technology, practical cars, competitive prices and an extensive support network, all of which are central to the brand’s ambitions.

And that, according to Leapmotor, is precisely the point. Making modern electric driving more accessible, rather than something reserved for those with the biggest budgets.

Patsalides says Cyprus must remain vigilant as inflation risks rise

Central Bank of Cyprus governor Christodoulos Patsalides has warned that a prolonged energy shock is intensifying inflationary pressures and increasing risks to the economic outlook, as the European Central Bank (ECB) keeps interest rates unchanged and Cyprus continues to experience elevated price growth.

In a statement following the ECB’s monetary policy decision on Thursday, October 29, Patsalides said the euro area faced a more prolonged period of elevated inflation, while Cyprus’ economic resilience, sound public finances and strong banking sector were helping the country withstand the effects of rising prices.

“The prolongation of the energy shock, the deterioration in the inflation outlook and the ECB’s commitment” were the defining features of the current situation, he said.

The ECB’s Governing Council decided to leave its three key interest rates unchanged, with the deposit facility rate at 2.50 per cent, the main refinancing rate at 2.65 per cent and the marginal lending facility rate at 2.90 per cent.

The decision followed September’s 0.25 percentage point increase, as the conflict in the Middle East continued to push energy prices higher and threaten both inflation and economic growth.

Patsalides said geopolitical tensions and the associated energy shock were continuing to intensify price pressures, with euro area inflation rising to 3.8 per cent in September from 3.2 per cent in August, largely because of higher energy prices, particularly petroleum products.

According to the ECB, energy inflation in the euro area climbed to 18.9 per cent in September from 14.3 per cent in August, while inflation excluding energy increased to 2.3 per cent from 2.1 per cent.

Services inflation also edged higher, reaching 3.2 per cent, compared with 3 per cent in August, while food inflation rose to 1.3 per cent from 1.1 per cent.

Diesel and petrol prices reached new peaks during September, partly reflecting higher refining margins, adding to the pressure on households and businesses.

Despite the deterioration in the inflation outlook, Patsalides said the tightening of financial conditions was helping to contain the extent to which energy-related price increases were spreading throughout the wider economy.

This tightening reflected both the transmission of previous monetary policy rate increases and a significant rise in long-term government bond yields, amid growing concerns about the sustainability of global public debt.

“So far, the indirect effects of the energy shock have remained relatively limited, while meaningful second-round effects have yet to emerge, as reflected in the latest developments in wage indicators,” he said.

Inflation expectations in international financial markets and relevant surveys also remained broadly contained, particularly over the medium and longer term, he added.

The ECB similarly said underlying inflation had remained broadly stable and wages had not yet shown a material response to the energy shock.

However, it warned that the increasing magnitude and duration of the energy shock could eventually drive inflation higher and weigh on economic growth through indirect effects and further price and wage increases.

Economic activity across the euro area had continued to demonstrate resilience, Patsalides said, although elevated uncertainty and more restrictive financing conditions were expected to weigh on growth in the period ahead.

The ECB has reiterated its commitment to bringing inflation back to its medium-term target of 2 per cent, while emphasising that future interest rate decisions would depend on incoming economic and financial data rather than a predetermined path.

“In light of the new data and our overall assessment, we judged that maintaining the key interest rates at their current levels allows the ECB to manage the prevailing uncertainty effectively, while remaining firmly committed to returning inflation to, and maintaining it at, the medium-term target of 2 per cent,” Patsalides said.

Cyprus faces elevated inflation

Turning to the domestic economy, Patsalides said Cyprus continued to demonstrate remarkable resilience despite heightened geopolitical uncertainty, supported primarily by robust domestic demand, favourable labour market conditions and sound public finances.

Nevertheless, inflation remained elevated at 5.2 per cent in September, driven largely by significant increases in energy prices and services costs.

Energy prices rose by 21 per cent, while services inflation reached 7.1 per cent, reflecting persistent pressure in these components of the domestic price basket.

There were also signs that underlying price pressures were beginning to ease, with core inflation, which excludes energy and food, declining to 3.9 per cent in September from 4.5 per cent in August.

Despite this moderation, Patsalides warned that risks to the inflation outlook remained tilted to the upside, underlining the need for continued vigilance and close monitoring of developments.

“In an environment of persistent inflationary pressures, economic resilience becomes a factor of critical importance, acting as an essential buffer against the cumulative effects of rising prices and helping preserve the economy’s growth momentum,” he said.

He identified several ways in which economic resilience could help Cyprus withstand the effects of inflation, beginning with the strength of the labour market and the high level of employment.

These conditions support household disposable incomes, allowing private consumption to remain an important driver of economic activity even as rising prices put pressure on purchasing power.

Sound public finances also provide an important safeguard, Patsalides said, because a resilient economy helps maintain a stable flow of tax revenues.

This gives the government the flexibility to introduce targeted support measures for vulnerable groups without placing excessive pressure on public finances.

He also highlighted the importance of the banking sector’s strong capital and liquidity positions, which reinforce financial stability and support banks’ capacity to finance economic activity effectively.

The resilience of the financial system is particularly important when tighter financing conditions threaten to constrain borrowing and investment, both of which are essential for sustaining economic growth.

Another source of strength is the broadening of Cyprus’ productive base, particularly through the development of dynamic sectors such as information and communication technologies.

A more diversified economy is better equipped to absorb external shocks and offset pressures affecting industries that are more exposed to elevated inflation, Patsalides said.

He added that this resilience, together with recent sovereign credit-rating upgrades, was strengthening Cyprus’ attractiveness as a reliable investment destination, supporting continued foreign capital inflows and improving the economy’s growth prospects.

Prudent policies remain essential

Patsalides stressed that economic resilience alone would not eliminate inflationary pressures, making the consistent implementation of prudent economic policies essential.

“In an environment characterised by global challenges, the consistent implementation of prudent economic policies remains the most effective way to shield the economy from the erosion caused by inflation,” he said.

The governor warned that the combination of upside risks to inflation and intensifying threats to the global economy made a comprehensive and disciplined policy approach increasingly important.

For the ECB, the challenge is to prevent the energy shock from becoming embedded in broader price and wage developments without unnecessarily undermining economic activity.

For Cyprus, the priority is to preserve the domestic conditions that have supported growth while limiting the effects of persistent price increases on households, businesses and public finances.

Patsalides’ assessment underlined the importance of maintaining economic stability, protecting purchasing power and strengthening the economy’s capacity to absorb external shocks as uncertainty over energy prices and the wider geopolitical outlook continues.

Hackers stole $6.3 billion from Binance, the world’s biggest cryptocurrency exchange, in a record digital asset theft.

How was Binance hacked?

About $6.3 billion of cryptocurrencies were drained from wallets that Binance uses to process transactions, according to the exchange and expert analysis of blockchain records.

Binance said in a statement on X that it initially thought the attack involved a compromised laptop. “However, our subsequent investigation has uncovered additional points of breach,” it added, without elaborating.

The exchange operates a secure asset fund for users, a $1 billion bitcoin reserve designed to protect customers in the event of a security breach, according to its website.

Co-CEO Richard Teng said losses would be covered by the fund and company resources.

According to US blockchain analytics firm TRM Labs, the attackers compromised Binance’s “signing infrastructure”, which authorizes transactions, allowing them to issue instructions that emptied the affected wallets.

The bulk of the heist unfolded in about 20 minutes, blockchain records show, beginning shortly after 2000 GMT on Thursday.

Once the funds were moved, the attackers raced to shift them beyond the reach of Binance counterparties and stablecoin issuers, which have frozen roughly half of the stolen assets.

An unusual feature of some cryptocurrencies, including major stablecoins such as Tether’s USDT and Circle’s USDC, is that their issuers can freeze them remotely.

“In layman’s terms, the attacker may not have stolen the vault key, they may have hijacked the system that tells the vault to release money,” said Joshua Chu, a Hong Kong lawyer who works on crypto cases.

Who is suspected of carrying out the Binance hack?

Several US blockchain analysis firms said the attack bears similarities to previous operations attributed to North Korean hackers.

Teng said Binance’s investigation had not yet identified the attackers, while North Korea routinely denies involvement in cyberattacks and cryptocurrency thefts. North Korea’s mission in Geneva and embassy in China did not immediately respond to requests for comment.

TRM said the breach shared characteristics with last year’s attack on crypto exchange Bybit, which the FBI attributed to North Korean hackers. The firm said it was highly confident the same group was behind the Binance theft.

Chainalysis said funds stolen in an attack last month on Bitget were being mixed with proceeds from the Binance breach.

Where did the stolen $6.3 billion go?

About half the stolen assets were stablecoins that have since been frozen by issuers including Tether, Circle, Ripple and World Liberty Financial, the Trump family’s crypto venture.

That doesn’t mean the coins will be returned to Binance, but it significantly limits the attackers’ ability to convert them into cash.

TRM said some of the funds had already been posted as collateral to borrow ether and estimated that about $2.4 billion worth of bitcoin and ether is beyond reach.

“No company issues bitcoin or ether and no company can freeze either one,” said Patrick Tan, general counsel of ChainArgos, a blockchain intelligence firm in Singapore.

“The bitcoin and ether can be stopped only if the attacker sends them to a crypto-asset exchange or broker that is able and willing to freeze them, or if law enforcement obtains the private keys.”

Market participants said the attackers would likely mix the stolen coins with other assets or use lesser known coins and exchanges to try to move the proceeds.

“The more time passes, the less likely they will be able to fold those funds into other exchanges or payment providers — they essentially get blacklisted,” said Bernardo Brites, CEO of Trace Finance, a stablecoin infrastructure company.

“In reality a lot of the proceeds of hacks … (can only be laundered) in the first few hours, but after that happens, you have a lot of different players who know those are marked funds … and they usually sit there for years.”

What happens next after the Binance hack?

The theft is the latest in a series of major digital asset breaches. Attackers stole $2.9 billion of cryptocurrency across nearly 150 incidents last year, according to TRM Labs.

The attack has also rattled confidence in the sector. Cryptocurrencies fell on Friday and the total market value of stablecoins declined, suggesting investors were pulling money from digital assets.