Malta's July inflation expected to hit 6.5%

Malta’s annual inflation is estimated to rise to 6.5% in July, according to Eurostat’s flash estimate for the euro area released today.

In June, inflation as measured by the Harmonised Index of Consumer Prices (HICP), stood at 6.1%. The figures show that Malta’s inflation remains the lowest in the Eurozone.

The European statistical agency expects the euro area’s annual inflation in July to increase to 8.9% from 8.6% in June.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in July (39.7%, compared with 42% in June), followed by food, alcohol & tobacco (9.8%, compared with 8.9% in June), non-energy industrial goods (4.5%, compared with 4.3% in June) and services (3.7%, compared with 3.4% in June).

Malta’s inflation remains insulated from increases in the energy sector since government is subsidising the higher costs for fuel and electricity.