Malta’s annual inflation rate fell to 2.0 per cent in August 2026, down from 2.1 per cent in July, according to the latest Harmonised Index of Consumer Prices (HICP) data published by the National Statistics Office (NSO).

The decrease in Malta’s inflation rate contrasts with an increase in inflation across both the euro area and the European Union.

Latest Eurostat data show that annual inflation in the euro area increased to 3.2 per cent in August, from 2.9 per cent in July. EU annual inflation also rose, reaching 3.2 per cent in August compared with 3.0 per cent in July.

Malta’s August inflation rate was 1.2 percentage points below the euro area rate.

The 2.0 per cent annual inflation rate recorded in August represents a 0.1 percentage point decrease from July.

The 12-month moving average rate for Malta stood at 2.3 per cent in August.

The largest upward contribution to Malta’s annual inflation rate came from the restaurants and accommodation services index, which contributed 0.41 percentage points.

Housing, water, electricity, gas and other fuels index and the transport index each contributed 0.28 percentage points.

The largest downward contribution was recorded by the information and communication Index, which reduced the annual inflation rate by 0.16 percentage points, mainly due to lower prices for mobile phone services.

Compared with July, annual inflation fell in six EU Member States, remained stable in one and increased in 20 Member States.

In August, services contributed 1.43 percentage points to the euro-area annual inflation rate, followed by energy at 1.29 percentage points, non-energy industrial goods at 0.30 percentage points, and food, alcohol and tobacco at 0.22 percentage points.