In June, the annual inflation rate experienced a slight decrease to 6.3%, the NSO revealed. However, food prices were driven higher due to an increase in the cost of dairy products.
The Harmonised Index of Consumer Prices, which measures the annual inflation rate, recorded a decline from the 6.3% reported in May.
According to the National Statistics Office, the highest inflation rates in June were observed in food and non-alcoholic beverages, standing at 11.8%, and housing, water, electricity, gas, and other fuels, at 7.6%.
Among these categories, food experienced the largest increase, with a rise of 1.99 percentage points. Malta Dairy Products announced a price hike during June, citing the inability to absorb the ongoing rise in production and operational costs. This marked the first increase in the cost of Benna’s fresh milk in four years.
The second most significant impact on inflation was seen in the restaurants and hotels index, which rose by 1.24 percentage points, primarily driven by higher restaurant prices.
Housing, water, electricity, gas, and other fuels increased by 0.73 percentage points, mainly due to higher costs of house maintenance services.
On the other hand, the lowest annual inflation rates were observed in clothing and footwear (0.5%) and communication (1%).
No downward impacts on annual inflation were recorded.
In June, Malta’s Harmonised Index of Consumer Prices indicated an annual rate of change of 6.2%, which was 0.7 percentage points higher than the rate in the euro area.
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