Malta’s annual inflation rate eased to 2.5 per cent in June 2025, down from 2.7 per cent the previous month, according to the latest Eurostat data.

While this places Malta slightly above the European Union’s average inflation of 2.3 per cent, which rose from 2.2 per cent in May, it remains well below the highest rates in the bloc

Meanwhile, euro area inflation saw a modest uptick to 2.0 per cent, staying lower than both Malta and the wider EU average.

Malta’s inflation rate has been relatively stable in recent months, fluctuating between 1.8 per cent and 2.7 per cent since the start of the year, reflecting a steadier threshold compared to some EU member states experiencing more volatile price movements.

Across the EU, inflation trends varied significantly, with Cyprus recording the lowest annual rate at just 0.5 per cent, followed by France at 0.9 per cent and Ireland at 1.6 per cent.

On the other end of the spectrum, Romania reported the highest inflation at 5.8 per cent, with Estonia at 5.2 per cent and Hungary and Slovakia both at 4.6 per cent.

Compared to May, inflation fell in five EU countries while rising in twenty-two, showing persistent but uneven price pressures. Malta’s position in the middle of this range suggests some stability for the island nation,avoiding both deflationary risks and excessive inflationary spikes.

The main driver of inflation in the euro area was the services sector, contributing +1.51 percentage points, followed by food, alcohol, and tobacco at +0.59 percentage points. Energy prices, however, continued to have a deflationary effect, pulling the overall rate down by -0.25 percentage points. This pattern was reflected in Malta’s inflation dynamics, where service costs and food prices likely played a significant role, while energy prices provided some relief.

The next flash estimate for euro area inflation in July 2025, due on August 1st, will provide further insights into whether current trends are consolidating or shifting. For now, Malta’s inflation remains in line with broader EU patterns.