Below the European average

Inflation in Malta dips below euro area average, hitting lowest level in over 2 years.

Eurostat estimates indicate that, in the month of April, the inflation rate in Malta fell below the European average for the first time since August. The rate fell to 2.3%, compared with 2.4% in the euro area.

By the end of last January inflation in the euro area was 2.8% while in Malta it was 3.7%. Thus, over three months, from a rate 0.9 percentage points above the euro area average, the rate is now 0.1 percentage points lower. This means that, over three months, inflation in Malta has fallen by one percentage point more than it did in the euro area.

On the contrary, between August and January, the inflation rate in the euro area had fallen by one percentage point more than it had fallen in Malta.

It was after the Stabbiltà scheme was introduced that the trend of inflation in Malta changed. From February onwards the rate of food price inflation in Malta fell from 8.7% to 5.3%, or by 3.4 percentage points.  This decrease was a quarter more than that observed in the rest of the euro area. In contrast, between September and January food price inflation in Malta had remained stable, while in the euro area there was a one-third fall.

The fall in food price inflation is now also beginning to spread to other goods and services, so much so that, when one looks at the inflation of the index excluding energy, food, beverages, and tobacco, it now stands at 1.6% in Malta, compared with 2.7% in the euro area.

This is the first time that this rate has fallen below 2% since October 2021. 2% is the average inflation rate since March 2013.

Photo: Eddie Lee / Money; Getty Images

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