Inflation continues to rise in May

The annual rate of inflation reached 4.1 percent in May, unchanged from April but up steeply from -1.1 percent in May last year, figures issued today by the National Statistics Office show.

The 12-month moving average rate of inflation was 2.3 percent in May, from 1.9 in April and 1.4 percent in May last year.

Meanwhile, Eurostat said today that euro area annual inflation was 3.7 percent in May 2008, up from 3.3% in April. A year earlier the rate was 1.9%. Monthly inflation was 0.6% in May 2008.

The NSO said that in May the Harmonised Index of Consumer Prices in Malta increased to 108.00 from 107.24 in April.

This primarily reflected an increase of 2.0 per cent in the Restaurants and Hotels Index, due to price rises in accommodation services. The Clothing and Footwear Index registered an increase of 1.5 per cent, due to seasonal price rises in garments. The Recreation and Culture Index increased by 0.9 per cent on account of higher prices of package holidays.

Higher air fares caused the Transport Index to go up by 0.8 per cent. An increase in the price of beer caused the Alcoholic Beverages and Tobacco Index to shift up by 0.2 per cent. Higher prices of kerosene and materials for the maintenance and repair of dwellings underlay an increase of 0.1 percent in the Housing, Water, Electricity, Gas and Other Fuels Index.

A decrease of 0.1 per cent was recorded in the Miscellaneous Goods and Services
Index.