Fuel cushion ensures Malta retains lowest Eurozone inflation rate in June

Inflation in Malta is expected to remain the lowest in the Eurozone, according to a flash estimate for June released by Eurostat, the EU statistical agency.

The annual June inflation in Malta is estimated to reach 6.1%, up from 5.8% a month earlier. The next lowest inflation rate is expected in France with 6.5%.

Estonia is expected to register the highest inflation rate with 22%, followed by Lithuania at 20.5%.

Euro area annual inflation as measured by the Harmonised Index of Consumer Prices is expected to be 8.6% in June, up from 8.1% in May according to the Eurostat flash estimate.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in June (41.9%, compared with 39.1% in May), followed by food, alcohol and tobacco (8.9%, compared with 7.5% in May), non-energy industrial goods (4.3%, compared with 4.2% in May) and services (3.4%, compared with 3.5% in May).

Fuel and electricity prices in Malta have remained stable as a result of government subsidies, which explains the below average inflation.