Maltese inflation rate remains slightly elevated at 2.4% in May

Malta’s annual inflation rate as measured by the Retail Price Index (RPI) held steady at 2.4 per cent in May 2025, reflecting persistent upward pressure on consumer prices despite broader economic stabilisation.

According to newly released data from the National Statistics Office (NSO), the 12-month moving average – a more stable long-term indicator – stood at 1.6 per cent.

The main driver behind this inflationary pressure was the food index, which contributed +0.83 percentage points to the overall rate. Notably, fruit prices saw significant increases during the month. The transport and communication Index added another +0.33 percentage points, mainly due to a spike in airfare prices, while the other goods and services index contributed +0.31 percentage points, pushed up by higher prices in jewellery.

Inflation was most pronounced in the other goods and services category, which recorded a 4.2 per cent annual increase. Within this group, jewellery, watches, and similar items stood out with a 17.8 per cent year-on-year rise.

Other notable increases were seen in non-durable household goods (1.8 per cent), veterinary services and pet food (1.3 per cent), and insurance and financial services (2.4 per cent).

Meanwhile, certain sectors saw little to no price movement. Utilities – water, electricity, gas, and fuels – registered 0.0 per cent inflation, reflecting price stability in all subcategories thanks to a national price freeze. Furnishings and household equipment also experienced a modest increase of just 0.6 per cent.

Importantly, the NSO reported no downward contributions to the overall inflation rate in May, suggesting that no major categories saw price declines.

The RPI, which tracks the prices of a fixed basket of goods and services typically purchased by private households, is a key gauge for understanding cost-of-living trends in Malta. Significantly, it is the measure used to calculate increases to the Cost of Living Allowance (COLA) at year-end.

While the 2.4 per cent rate remains moderate by historical standards, it continues to reflect price pressures in select consumer sectors.