Inflation remains stable in June at 2.4%

Malta’s Retail Price Index (RPI) remained unchanged in June 2025 when compared to the previous month, with annual inflation holding steady at 2.4 per cent, according to new figures released by the National Statistics Office (NSO).

This means that the average cost of a fixed basket of consumer goods and services has increased by 2.4 per cent compared to June 2024. The RPI measures the change in the cost of this basket for the typical household and is used for adjusting wages and rents in line with inflation.

Key contributors

The index reveals that the most significant contributor to the annual rate of inflation was the food index, which saw prices rise by 4.5 per cent year-on-year, contributing 0.97 percentage points to the overall RPI. This was followed by housing costs, which rose by 0.8 per cent, and other goods and services, which also registered a 4.3 per cent increase.

Transport and communication costs rose by 0.8 per cent compared to the same month last year, while beverages and tobacco went up by 3.7 per cent. In contrast, the index for clothing and footwear rose by just 1.2 per cent, with water, electricity, gas and fuels remaining unchanged over the same period.

On a month-to-month basis, minimal increases were recorded in categories such as beverages and tobacco (0.2 per cent), housing (0.2 per cent), furnishings and household equipment (0.1 per cent), and recreation and culture (0.1 per cent). The overall RPI remained flat compared to May 2025.

Despite steady inflation in June, the NSO data shows that the pace of inflation has eased from the higher rates seen in 2023. The 12-month moving average rate dropped to 1.7 per cent in June 2025, down from 5.1 per cent a year earlier. This reflects a broader trend of declining inflation following global supply chain stabilisation and slower growth in energy and transport costs.

While inflation has moderated compared to the post-pandemic highs, sustained increases in essential categories like food and housing may continue to pressure household budgets.

Businesses, particularly in retail and hospitality, are likely to feel the impact of these shifts in consumer purchasing power, even as overall inflation stabilises.