Malta’s annual inflation rate rose slightly to 2.1 per cent in March 2025, up from 2.0 per cent in February, according to data from the Harmonised Index of Consumer Prices (HICP).

This puts Malta’s inflation just below the euro area average of 2.21 per cent, signalling a continued trend of convergence with broader European price dynamics.

The most significant price increases were recorded in Education (5.2 per cent) and Miscellaneous goods and services (3.8% per cent), while Communication experienced the sharpest decline at -4.9 per cent. Household furnishings and maintenance registered a modest increase of 0.5 per cent.

The main drivers of inflation in March were higher prices for non-alcoholic beverages, restaurant services, and air transport. The Food and non-alcoholic beverages Index contributed the most to overall inflation (+0.57 percentage points), followed by Restaurants and hotels (+0.40 points) and Transport (+0.39 points). Conversely, Communication exerted a downward pull on inflation (-0.19 points), mainly due to falling mobile phone service prices.

The narrowing gap between Malta’s inflation and that of the euro area reflects stabilising economic conditions and price trends across key sectors.