Malta Among EU Countries with Lowest Inflation Rates

Malta registered one of the lowest inflation rates in the European Union in June, with its annual rate easing to 2%, according to figures published by Eurostat on Friday. The reading marked Malta's lowest level since February 2025.

The rate fell from 2.1% in May and from 2.5% in June 2025, leaving Malta below the euro area average of 2.8% and the EU average of 2.9%. Only Sweden, Czechia and Denmark recorded lower annual rates across the bloc, placing Malta among the strongest performers on price stability.

The figures come as inflation across the wider euro area moderated, falling from 3.2% in May to 2.8% in June. A year earlier, the euro area rate had stood at 2%, underlining the extent to which Malta has held its position while price pressures elsewhere in Europe have shifted.

Data released by the National Statistics Office show the largest price increases in June were recorded in recreation, sport and culture, at 3.4%, and education services, at 3.2%. Restaurants and accommodation made the biggest single contribution to the month's inflation, followed by food and transport, largely reflecting higher prices for restaurant services, meat and air travel.

Movements in the opposite direction helped keep the overall rate contained. Prices continued to fall for clothing and footwear, down 3.9%, and for information and communication, down 1.6%. Lower prices for clothing and mobile phone services eased overall inflation and offset some of the upward pressure from the services sector.

Malta's continued run of low and stable inflation offers a supportive backdrop for households and businesses alike, reinforcing purchasing power and providing a measure of predictability for investment planning. With price growth holding below the European average, the country remains well placed to sustain confidence across its consumer-facing and services sectors as the year progresses.