Inflation down for third consecutive month - Eurostat

Inflation in Malta continued to drop for the third month in a row suggesting that the worse in the spiralling of prices may be over.

Figures published yesterday by Eurostat, the EU's statistics arm, show that inflation in Malta last month dropped to 4.9 per cent, almost one percentage point less than three months earlier.

In July, Malta's inflation hit a record high at 5.6 per cent. Still, even though Malta's inflation is declining, it is still higher than the average in the euro area.

Eurostat sources said the slowdown in Malta's inflation is in line with what is happening all over the EU.

"Lower inflation rates are particularly being influenced by lower commodity prices particularly of oil and food. A barrel of oil yesterday was down to $81. In July, it was $146. The same applies to wheat and cereals."

According to Eurostat, annual inflation in the euro area last month stood at 3.6 per cent, down from 3.8 per cent in August. A year earlier, the rate was 2.1 per cent.

Taken on a 12-month average, Malta's rate in September was four per cent while that of the eurozone was 3.4 per cent.

Eurostat said that he lowest annual rates were registered in The Netherlands (2.8 per cent), Germany (3 per cent), Ireland and Portugal (3.2 per cent) and the highest in Latvia (14.7 per cent), Bulgaria (11.4 per cent) and Lithuania (11.3 per cent).