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Cyprus' inflation rate fell for a ninth consecutive month to 3.7 per cent year-on-year in April, the lowest level since peaking at 10.6 per cent in July 2022, the country's statistical institute said.

The Statistical Service of Cyprus (CYSTAT) said that in April, the inflation rate in Cyprus was the lowest in the eurozone, slightly above that of Luxembourg and almost one-half of theaverage, which is expected to be 7 per cent, up from 6.9 per cent in March, reports Xinhua news agency.

CYSTAT said that the slowdown in the inflation rate in April was due to an easing in the prices of electricity and fuel.

It added that prices also rose at a slower pace for food and non-alcoholic beverages, housing and utilities, household equipment and restaurants and hotels.

The European Central Bank (ECB) decided on Thursday to raise its main interest rates by 25 basis points (bps) in a bid to quell inflation.

As of May 10, the interest rates on the main refinancing operations will be increased to 3.75 per cent from the previous 3.5 per cent, the bank said in a statement.

The interest rates hike would cause despair among thousands of Cypriot borrowers, who once again risk losing their homes as they are unable to pay their monthly loan installments, which had gone up by several hundred euros, said the local consumers association.