Inflation in Malta eased to 2.3 per cent in January 2026, down from 2.5 per cent in December 2025, as measured by the Harmonised Index of Consumer Prices (HICP).

While the latest data points to a continued moderation in price growth, Malta’s annual inflation rate remains above that recorded across the euro area and the wider European Union. In January, inflation stood at 1.7 per cent in the euro area and 2 per cent across the EU, according to Eurostat.

In January 2026, the largest upward contribution to overall inflation in Malta came from the food and non-alcoholic beverages index, which added 0.67 percentage points to the annual rate. The increase was largely driven by higher meat prices.

Restaurants and accommodation services registered the second-largest contribution, adding 0.59 percentage points, primarily reflecting rising prices for restaurant services. Recreation, sport and culture followed, contributing 0.26 percentage points due to higher recreational service costs.

At a category level, the highest annual inflation rates were recorded in education services (4.4 per cent) and recreation, sport and culture (3.9 per cent), indicating sustained price pressures in service-oriented sectors.

However, not all sectors experienced price growth. Clothing and footwear registered a negative annual inflation rate of -2.7 per cent, while Information and communication fell by -2.6 per cent. These categories contributed negatively to overall inflation, each subtracting 0.13 percentage points from the headline rate.

Insurance and financial services also exerted a marginal downward effect, reflecting lower prices in selected financial service categories.

Compared with the euro area, Malta’s all-items HICP in January 2026 was 0.6 percentage points higher than the 1.7 per cent recorded across the single currency bloc.