‘Stabbiltà’ coincides with lowest inflation in 30 months

Central Bank remarks that inflation has fallen to its lowest level in two and a half years.

Central Bank economists have noted that inflation last February has fallen to the lowest level observed since September 2021. This means that the annual rise in the cost of living has moderated to what it was two and a half years ago. This was due to a decrease in the price of food during the month of February, which incidentally is the month in which the Stabbiltà scheme started operating.

In its monthly economic update, the Central Bank also observes that, excluding the effect of energy prices and seasonal changes in food items, the inflation rate in Malta remained below that in the European Union.

Meanwhile, the economists stated that the Maltese economy is continuing to grow, albeit at a slightly more moderate rate than in past years. This has led, for instance, to a drop in demand for more workers, although the unemployment rate has remained at historic lows.

The strong state of the economy has led to a further improvement in government finances, as tax revenue grew further and offset the rise in expenditure. Furthermore, deposits with local banks have risen sharply. Property sales remained sustained, while retail sales also increased.

Meanwhile, operators in the construction sector continued to indicate a significant degree of optimism, despite that the number of permits approved fell. There has also been a sharp decline in energy production. 

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