May inflation rises to 5.8% driven by higher food prices

It is becoming a familiar story now with inflation for May registering another upward movement, according to the Harmonised Index of Consumer Prices published today.

Annual inflation in May reached 5.8%, up from 5.4% in April with food prices having the largest upward impact, the HICP shows.

The HICP is released by the National Statistics Office and is the index used to compare inflation rates across the EU. It differs slightly from the Retail Price Index (RPI) which is used in Malta as a benchmark to establish statutory wage increases.

Food and non-alcoholic beverages increased by 10.4% on an annual basis in May, followed by the housing, water, electricity, gas and other fuels sub-index (8.8%).

Given that electricity and fuels have remained stable as a result of government intervention, the price increases were for housing.

The lowest annual inflation rates were registered in Communication (-1.1 per cent) and alcoholic beverages and tobacco (0.9 per cent).

The results come as Benna, the major milk producer, announces a hike in its milk products to mitigate increasing costs as a result of the Russian invasion of Ukraine.

A MaltaToday survey on concerns published last Sunday shows that inflation, particularly food prices, has become the topmost concern. The findings showed that 28.1% of people consider inflation and higher food prices as their principle worry. This is more than double the number of people who indicated inflation as a main concern last March.

READ ALSO: Food inflation is frying your purse. War in Ukraine is the cause