Malta’s annual inflation rate stood at 2.4 per cent in December 2025, remaining above both the euro area average of 1.9 per cent and the European Union average of 2.3 per cent, according to the latest figures published by Eurostat, the EU’s statistical office.

While inflation in Malta edged down slightly from 2.5 per cent in November, it continues to outpace price growth across the single currency bloc, where inflation has been easing more steadily. The euro area annual inflation rate declined from 2.1 per cent in November to 1.9 per cent in December, compared with 2.4 per cent a year earlier. EU-wide inflation also eased marginally, falling from 2.4 per cent to 2.3 per cent year-on-year.

Across the EU, the lowest annual inflation rates were recorded in Cyprus (0.1 per cent), France (0.7 per cent) and Italy (1.2 per cent), while the highest rates were observed in Romania (8.6 per cent), Slovakia (4.1 per cent) and Estonia (4.0 per cent). Compared with November, inflation fell in eighteen Member States, remained unchanged in three and increased in six.

Inflation excluding energy remains elevated

When energy prices are excluded, Malta’s inflation rate rises further to 2.6 per cent, compared with 2.3 per cent in the euro area and 2.6 per cent across the EU. This indicates that domestic price pressures, particularly in services and food-related categories, remain a key driver of inflation locally.

At euro area level, the largest contribution to annual inflation in December came from services, which added 1.54 percentage points, followed by food, alcohol and tobacco (+0.49 percentage points) and non-energy industrial goods (+0.09 percentage points). Energy prices, by contrast, exerted a downward effect (-0.18 percentage points) on overall inflation.

Food and services drive Maltese price pressures

In Malta, the highest annual inflation rates in December were recorded in education (4.3 per cent) and food and non-alcoholic beverages (3.7 per cent). Meanwhile, the steepest price declines were registered in communication (-5.5 per cent) and clothing and footwear (-3.2 per cent).

Food prices were the single largest contributor to Malta’s overall inflation, adding 0.68 percentage points to the annual rate, largely reflecting higher prices for meat. This was followed by restaurants and hotels (+0.48 percentage points) and transport (+0.33 percentage points), driven mainly by higher prices for restaurant services and air transport.

On the downside, inflation was dampened by falling prices in communication, which reduced overall inflation by 0.20 percentage points, and clothing and footwear, which contributed a further -0.13 percentage points, reflecting lower prices for mobile phone services and garments.

Although Malta’s inflation rate continues to trend downwards, the data suggest that domestic demand and service-related costs remain more persistent than in much of the euro area. For policymakers and investors alike, the divergence highlights the importance of monitoring price developments in consumer-facing and service-intensive sectors as inflation gradually normalises across Europe.