Malta had the lowest annual inflation rate in the EU last month, according to data released by Eurostat.
‘Inflation’ measures how much more expensive a set of goods and services has become over a certain period, in this case, a year.
Countries across the European front have seen a steady increase in annual inflation rates, including Malta. Yet, when compared with other European countries, Malta still scored the lowest.
Conversely, the highest annual rates were recorded in Estonia (12%), Lithuania (10.7%), and Poland (8%).
The EU recorded a jump from 0.3 % (December 2020) to 5.3 % (December 2021), whereas Malta recorded a rise from 0.2 % to 2.6 % in the same timeframe.
In December, and in the euro area alone, the highest contribution to the annual inflation rate came from energy (+2.46 percentage points, pp), followed by services (+1.02 pp), non-energy industrial goods (+0.78 pp), and food, alcohol & tobacco (+0.71 pp).
In Malta, the largest upward impact on annual inflation was registered in the food and non-alcoholic beverages index (+0.90 percentage points), largely due to higher prices of vegetables.
The second and third largest impacts were measured in the restaurants and hotels Index (+0.52 percentage points) and the recreation and culture Index (+0.39 percentage points), mainly on account of higher prices of restaurant services and pet food respectively.
The findings could be suggestive of a cultural shift wrought by the pandemic. But questions still remain as to whether this could change in the coming weeks, with more persons seeking the COVID-19 booster.
Do you think inflation will continue to rise, in Malta?