Inflation hits 6.8% as food prices remain the main upward driver

Annual inflation in July increased to 6.8%, up from 6.1% the previous month, with rising food prices providing the largest upward impact, the National Statistics Office said.

The Harmonised Index of Consumer Prices (HICP) released on Thursday shows that the food and non-alcoholic beverages index registered a two-point increase in July when compared to the same month last year.

Annual inflation has been on an upward spiral since July last year, accelerating substantially since the start of 2022.

Data provided by NSO shows that until June, Malta’s annual inflation rate was 2.5 points lower than the Euro zone average. However, if energy and unprocessed food are excluded from the index, Malta’s annual inflation in June was 1.6 points higher than the euro area average.

Energy prices in Malta have remained stable as a result of heavy government subsidies, which is ensuring that annual inflation remains the lowest in the EU. However, the figures suggest that beyond energy and fuels, inflation in Malta is higher than the euro zone average.