Inflation in September in Malta roared to 2.4% up from 2% in the previous according to Haromnised Index of Consumer Prices as released today by the NSO. Malta’s inflation rate remains well subdued the Euro-area’s average however which jumped to 3.8% in September according to Eurostat.
In Malta, food remained the main driver of inflation, with restaurants contributing 0.52% to the annual rate and food and non-alcoholic beverages contributing a further 0.43%. Transport contributed 0.35%. Information and communication was the only major category to make a significant downward contribution, reducing the annual inflation rate by 0.18%.
In the Euro area, the countries with the highest inflation rates were Lithuania at 6.1%, Bulgaria at 5.6%, and Cyprus and Luxembourg at 5.2%. Malta had the lowest inflation rate at 2.4%, followed by Finland at 2.7%, and Latvia, the Netherlands and Slovakia at 3%.
Across the European Union, the highest annual inflation rates were recorded in Romania at 6.5%, Lithuania at 6.1% and Bulgaria at 5.6%. The lowest rates were recorded in Sweden at 1%, followed by Hungary and Denmark, both at 2.1%.
Inflation in Europe is being driven primarily by higher energy prices, which can feed into other components of the economy by increasing transport, production and operating costs. In the Euro area, energy prices rose by 18.9% year-on-year in September, while services inflation stood at 3.2%. Food, alcohol and tobacco prices also rose, although at a more moderate rate of 1.3%.
Newsroom
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