Clothing and dining drive inflation uptick in March

The annual inflation rate in Malta climbed to 2.1 per cent in March 2025, up from 1.9 per cent the previous month, according to newly released data from the National Statistics Office (NSO).

This modest rise was driven primarily by higher prices in the Clothing and Footwear sector, which registered an annual inflation rate of 4.3 per cent. Notably, the price of footwear rose by 4.5 per cent, slightly outpacing the 4.2 per cent increase in clothing. This category also recorded the highest monthly increase at 8.0 per cent.

Another significant contributor was the Food Index, particularly restaurant services and take-aways, which together pushed the sector’s contribution to overall inflation to +0.56 percentage points. The Other Goods and Services category also made a notable impact (+0.27 percentage points), with jewellery prices rising sharply.

In contrast, inflation remained flat for water, electricity, gas and fuels, which recorded a 0.0 per cent change both annually and monthly. Housing, too, saw only a minimal increase of 0.5 per cent year-on-year.

For businesses, especially those in hospitality and retail, these figures may signal sustained demand, but also underline the importance of closely monitoring input costs as inflationary pressures shift.