In October 2021, the annual rate of inflation as measured by the HICP was 1.4%, double the increase registered a month before (0.7%), figures published by the NSO today show. Despite this increase, Malta’s inflation remained lowest in the euro area, below Portugal (1.8%), Finland and Greece (both 2.8%). The highest annual rates were recorded in Lithuania (8.2%), Estonia (6.8%) and Hungary (6.6%), according to separate data released by Eurostat.
Food remained the biggest contributor to inflation in Malta, with the Food and non-alcoholic beverages Index increasing by +0.53%, argely due to higher prices of vegetables. The second and third largest impacts were measured in the Recreation and culture Index (+0.34%) and the Housing, water, electricity, gas and other fuels Index (+0.26%), mainly on account of higher prices of pet food and house maintenance services respectively
The downward impacts on annual inflation were registered in the Restaurants and hotels Index (-0.38 percentage points) and the Communication Index (-0.07%), mainly reflecting a lower contribution from accommodation services and lower prices of mobile phone services respectively.
The euro area annual inflation rate was 4.1% in October 2021, up from 3.4% in September.
