Malta’s annual inflation rate stood at 2.5% in October 2025, outpacing the Euro area average of 2.1%, according to the latest Harmonised Index of Consumer Prices (HICP) data. Price movements across key sectors show a mixed picture, with strong upward pressures from services and food. Food prices have consistently lead the charge in Malta’s inflationary pressures.
Malta’s inflation rate increased from 2.4% to 2.5% from September to October with the strongest upward push coming from the Restaurants and hotels category, contributing +0.68 percentage points. This was primarily driven by rising restaurant prices, reinforcing the sector’s role as a consistent source of inflationary pressure. Food and non-alcoholic beverages added a further +0.57 percentage points, largely due to higher meat prices. Transport contributed +0.38 percentage points, influenced mainly by more expensive air travel.
These upward effects were partially offset by slight reductions in Communication (-0.14 percentage points) and Clothing and footwear (-0.11 percentage points). Cheaper mobile phone equipment and lower garment prices were the main drivers behind these declines.
Euro area inflation has risen for the first time in months, edging up to 2.2% from 2.0% and was down at 2.1% in the month of October in line with the ECB’s rate. Malta, meanwhile, inflation in Malta remained above this average at 2.5%, with food and restaurant prices continuing to exert upward pressure.
Inflation rates in the EU area were highest in Romania at 8.4%, Estonia at 4.5%, and Latvia at 4.3%. They were lowest in Cyprus at 0.2%, France at 0.8%, and Italy at 1.3%.
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