In December, Malta experienced an inflation rate of 3.7%, a slight decrease from November’s 3.9%. However, it remained higher than the EU and Eurozone averages. 

The National Statistics Office revealed that the main contributors to Malta’s inflation were the Food and non-alcoholic beverages sector, with a substantial impact from rising vegetable prices.

Euro area inflation rose to 2.9% in December, up from 2.4% in November, while the EU recorded an annual inflation rate of 3.4%, an increase from 3.1% in November. A year earlier, the EU’s inflation rate was significantly higher at 10.4%.

The Food and non-alcoholic beverages Index had the most substantial impact on Malta’s inflation, followed by the Restaurants and hotels Index and the Housing, water, electricity, gas, and other fuels Index. 

The recent focus on food prices arose when the Maltese government urged retailers to lower prices by 15%, drawing criticism from the Chamber of Commerce.

In the EU, Denmark, Italy, and Belgium had the lowest annual inflation rates, while Czechia, Romania, and Slovakia recorded the highest. Eurostat reported that services had the most significant contribution to the euro area’s inflation rate in December, followed by food, alcohol & tobacco, non-energy industrial goods, and energy.

Meanwhile, the UK experienced unexpected inflation growth in December, challenging predictions of a slowdown and impacting hopes for an early interest rate cut.

#MaltaDaily