Inflation Hits Lowest Level Since Russia’s Invasion Of Ukraine – How Does Malta Compare?
Inflation in Europe has witnessed a significant decrease, dropping to its slowest pace since Russia invaded Ukraine.
Consumer prices across the 20 nations using the euro grew by 6.1% last month compared to a year ago, decelerating from a 7% rise in April,
When we compare it to other countries, Malta’s inflation rate has dropped from 7.1% to 6.4%.
This seems like great news at first, but we need to understand why this is happening.
The cost of things is going up all over Europe mostly because gas prices are shooting up around the world. But, Malta didn’t feel this increase as much, thanks to programs put in place by its government.
So, it’s important to see how each country’s actions can help deal with worldwide economic issues.
The pace of food price increases slowed for the second consecutive month in May, while energy prices experienced a decrease. Core inflation, which excludes food and energy, decreased to 5.3% — a four-month low.
This data could provide a plausible reason for the European Central Bank (ECB) to consider pausing interest rate hikes in the near future. However, ECB President Christine Lagarde stated on Thursday that policymakers still had to cover more ground to achieve sufficiently restrictive interest rates.
“Today, inflation is too high and it is set to remain so for too long,” Lagarde said at a banking conference in Germany.
The ECB, along with the US Federal Reserve and Bank of England, targets an inflation rate of 2%.
Looking at these figures, it’s clear that residents of Malta and Europe are concerned about what’s coming for the next generation. Why? Well, house prices are going up faster than we’ve ever seen before, but wages aren’t keeping up. This means it’s becoming tougher and tougher for young people to afford a place to live.
What items have you noticed experienced a significant increase in price this year?