Cost of living increases in Malta as eurozone sees decline in prices

In August 2020, a month in which COVID-19 containment measures continued to be lifted, euro area annual inflation is expected to be -0.2%, down from 0.4% in July according to a flash estimate from Eurostat, the
statistical office of the European Union. Malta is among few countries in which the cost of living is still increasing, albeit at an estimated rate of 0.6%.

Eurostat said consumer prices in the 19 countries sharing the euro fell 0.4% month-on-month for a 0.2 year-on-year decline. The last time prices fell year-on-year in the euro zone was in May 2016 when they dropped by 0.1%.

Energy prices tumbled 7.8% year-on-year in August after a 8.4% fall in July. Prices of non-industrial goods also declined, by 0.1% after a 1.6% increase in July.

Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in August (1.7%, compared with 2.0% in July), followed by services (0.7%, compared with 0.9% in July), non-energy industrial goods (-0.1%, compared with 1.6% in July) and energy (-7.8%, compared with -8.4% in July).

Source: Eurostat