Malta annual inflation rate among lowest in Euro area

When compared with September 2011, the Euro area Harmonised Indices of Consumer Prices (HICPs) annual inflation rates remained unchanged in October 2011 at 3.0%. The rate was 1.9% in 2010 and the monthly inflation was 0.3% in October 2011.

The European Union inflation was 3.4% in October 2011, up by 0.1% from September. The rate was 2.3% in 2010 and again, the monthly inflation rate was 0.3% in October 2011 according to Eurostat figures.

Malta, with an annual rate of 2.4%, was among the lowest annual rates observed in EU member states with Sweden recording 1.1% and Ireland with 1.5%. The United Kingdom, Estonia and Slovakia the highest inflation rates with 5.0%, 4.7% and 4.6% respectively. Compared with the previous month, annual inflation fell in nine member states in October 2011, remained stable in five and rose in thirteen.

The lowest 12 month averages up to October 2011 were registered in Ireland with 0.8%, Sweden with 1.6%, and the Czech Republic and Slovenia both at 2.0%. The highest averages were found in Romania with 6.6%, Estonia with 5.2% and the United Kingdom 4.3%.

Focusing on the Euro area, the main components with the highest annual rates in October 2011 were transport with 5.8%, housing at 5.1%, and alcohol and tobacco at 4.4%. The lowest annual rates were observed for communications at 1.9%, recreation and culture at 0.3%, and education recording 0.9%.

Looking at the detailed sub-indices, fuel for transport increased by 0.52% points, heating oil increased by 0.19 % points, gas by 0.12% points and electricity increased by 0.11% point. These were the largest upward impacts on the headline rate while telecommunications, rents and vegetables had the biggest downward impacts with a decrease 0.16, 0.11 and 0.10 percentage points respectively.

The main components with the highest monthly rates were clothing with 2.6%, alcohol and tobacco with 0.9% and housing at 0.5%. The lowest were education with 0.3% and communications with 0.2%. In particular, garments increased by 0.12% points while footwear, gas and tobacco increased by 0.03% points each having the largest upward impacts. Fuels for transport, rents and accommodations, on the other hand, recorded an equal decrease of 0.03 % points each and had the biggest downward impacts.