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September 18 2025 07:41:42 by PCLMedia
 
Malta's annual inflation rate rose to 2.7% in August 2025, up from 2.5% in July, continuing a trend of rising prices that contrasts with more stable or declining inflation in several other EU countries.

According to figures released by the National Statistics Office (NSO), the 12-month moving average for August stood at 2.3%. The biggest contributors to the increase were rising prices in the Restaurants and Hotels index (+0.69 percentage points), followed closely by the Food and Non-Alcoholic Beverages index (+0.68pp), driven mainly by higher meat prices. Air transport costs also pushed the Transport index up by +0.40pp.

While Malta’s inflation rate remains the 15th highest in the EU, it still sits above the EU average of 2.4% and the eurozone average of 2.0%, based on Eurostat data. In contrast, inflation in some of the EU’s largest economies remained lower: Germany (2.1%), Ireland (1.9%), Italy (1.6%), and France (0.8%).

The Nationalist Party (PN) criticized the government, arguing that Malta’s rising cost of living is hitting families and workers hardest. “Prices keep shooting upwards while in many European countries, inflation is falling. The government is burdening the public while rewarding the few,” the PN said, linking the inflation issue to broader concerns about governance and affordability.

In response, the Labour Party (PL) pushed back, stating that the PN was misrepresenting the data. It cited the NSO report, emphasizing that the largest driver of inflation was restaurant services, not utility bills or government policies. The PL also disputed the claim that inflation was falling in other countries, noting that inflation has risen year-on-year in Germany, Ireland, and Italy.

Despite the rise, Malta is not among the worst-hit in the EU. The highest inflation rates were recorded in Romania (8.5%), Estonia (6.2%), and Croatia (4.6%), while the lowest were seen in Cyprus (0%), France (0.8%), and Italy (1.6%).

Inflation is measured using the Harmonised Index of Consumer Prices (HICP), which allows for direct comparisons across EU countries. However, the HICP does not include owner-occupied housing, a sector that has experienced significant price increases in Malta.
 

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