Malta’s inflation rises slightly to 2.7%

Malta’s annual rate of inflation rose to 2.7 per cent in August 2025, up from 2.4 per cent the previous month, according to new data released by the National Statistics Office (NSO).

The increase in the Retail Price Index (RPI) means the average cost of a fixed basket of consumer goods and services was 2.7 per cent higher than in August 2024. The RPI, which tracks price changes for a typical household, is a key measure used for adjusting incomes and contracts such as wages and rents.

Food prices were the most significant driver of inflation, rising by 4.4 per cent year-on-year and contributing 0.95 percentage points to the overall RPI. This was largely due to increased costs for take-aways and restaurant services. Other major contributors included the Transport and communication index, which added 0.43 percentage points, mainly on account of higher air transport prices, and Other goods and services, which contributed 0.25 percentage points, primarily due to more expensive jewellery.

Beverages and tobacco also saw a considerable increase, rising by 3.5 per cent. In contrast, the lowest annual inflation rates were recorded in water, electricity, gas and fuels, which remained unchanged, and Housing, which saw a modest rise of 1.0 per cent.

No categories registered a downward contribution to inflation in August.

The sustained rise in essential categories such as food suggests ongoing pressure on household budgets, even as other areas like energy show stability.

Businesses in sectors such as hospitality and retail may continue to feel the effect of changing consumer spending behaviour amid these price increases.