Ritratt: CanvaMalta’s annual rate of inflation remained unchanged at 2.3% in February, significantly outpacing the eurozone average of 1.9%, official data published on Wednesday reveals.
The Harmonised Index of Consumer Prices, released by the National Statistics Office, shows the all-items index rose by 0.4% compared with January, while the 12-month moving average rate edged up slightly to 2.5%.
Food prices remain the primary driver of inflation, contributing 0.63 percentage points to the overall rate despite easing modestly from 3.7% to 3.5% annually. Meat prices were identified as the main factor behind the increase.
Restaurants and accommodation services, the second-largest category by weight, recorded the sharpest monthly rise of 1.7% and now stand 3.6% higher than a year ago, reflecting continued pressure from tourism demand and labour costs.
Education services recorded the highest annual increase at 4.4%, followed by recreation, sport and culture at 4.1%. Personal care goods and services rose 3.9% over the year.
Two categories recorded annual price declines: information and communication fell by 4.1% – the steepest drop of any division – while clothing and footwear dropped 2.1%.
Opposition says burden on families growing
The Nationalist Party seized on the figures to argue that Maltese households face increasing financial pressure compared with their European neighbours.
In a statement, the PN noted that while Malta’s inflation rose from 2.0% to 2.3% over the past year, the eurozone average fell from 2.3% to 1.9%, a diverging trend of 0.7 percentage points.
“The rate of the cost of living in Malta continues to remain consistently, month after month, at a significantly higher level than the European Union average,” the party said, pointing to lower inflation in countries including Germany, France, Italy and Cyprus.
The opposition highlighted that food, restaurants and recreational services – “basic necessities” – were the main contributors to price rises, creating “further concern and anxiety” for the most vulnerable, particularly the elderly.
Over the paast weeks, PN leader Alex Borg launched a series of policy proposals, including removing tax on the Cost of Living Adjustment, exempting the first €10,000 of overtime and part-time work from taxation, and reducing VAT for food establishments from 18% to 7%.
The February figures continue a period of relative stability after inflation peaked at 7.4% in mid-2022. Historical data shows the rate stood at 3.0% in February 2024 and 2.0% a year ago.
The gap between Malta’s HICP and the Retail Price Index – which measures household costs more directly – remains notable, with RPI running at 2.5%, reflecting local housing and service costs not captured in the harmonised measure.
