Inflation at 5.6 per cent fuelled by utilities

The 12-month moving average rate of inflation in Malta stood at 3.3 per cent in July, while the annual rate of inflation stood at 5.6 per cent, the National Statistics Office (NSO) said yesterday.

The lowest annual inflation rates in the European Union in July were observed in The Netherlands (three per cent), Portugal (3.1 per cent) and Germany (3.5 per cent), and the highest in Latvia (16.5 per cent), Bulgaria (14.4 per cent) and Lithuania (12.4 per cent), according to Eurostat, the EU's statistical arm. Compared to June, annual inflation rose in 15 member states, remained stable in five and fell in seven.

The lowest 12-month averages up to July were registered in The Netherlands (1.8 per cent), the United Kingdom (2.6 per cent) and Portugal (2.7 per cent), and the highest in Latvia (15.1 per cent), Bulgaria (12.3 per cent) and Estonia (10.1 per cent).

The NSO said that in July in Malta the Harmonised Index of Consumer Prices increased to 110.58 from 108.55 in June, an increase of 1.9 per cent. This primarily reflected an increase of 8.2 per cent in the Housing, Water, Electricity, Gas and Other Fuels Index, mainly brought about by the increased surcharge rate. The Restaurants and Hotels Index registered an increase of 5.8 per cent, due to seasonal price rises in accommodation services.

The Transport Index went up by 1.7 per cent, mainly on account of higher air fares. The Food and Non-alcoholic Beverages Index went up by 0.7 per cent, due to higher prices of fruit, vegetables and bread. Higher rates charged by retirement homes underlay an increase of 0.4 per cent in the Miscellaneous Goods and Services Index.

Seasonal reductions in the prices of garments caused the Clothing and Footwear Index to go down by 5.7 per cent. Lower prices of furniture and furnishings caused the Furniture, Household Equipment and Routine Maintenance of the House Index to decrease by 0.5 per cent. The Health Index went down by 0.1 per cent, mainly due to lower prices of medical products, therapeutical appliances and equipment. Lower prices of printed material caused the Recreational and Culture Index to go down by 0.1 per cent.