Inflation soars above the EU average

The inflation rate in April stood at 3.8 per cent, the second-highest in the eurozone and more than one percentage point above the EU average.

Inflation stood at 1.5 per cent last January, rising to 2.4 per cent in February and March before hitting the 3.8 per cent mark last month.

The steady rise means that inflation in Malta is now one of the highest in the EU, with only Estonia, the Czech Republic, Poland and Hungary posting higher rates in April.

But, at 2.4 per cent, the yearly inflation rate between April 2011 and April 2012 remains lower than the eurozone average of 2.7 per cent.

Inflation rose in 10 EU member states when compared to March 2012, falling in 16 others. Average inflation throughout the eurozone fell slightly, to 2.6 per cent. Twelve months ago, eurozone inflation stood at 2.8 per cent.

At one per cent, Sweden boasted the EU’s lowest inflation rate in April. Hungary’s 5.6 per cent was the highest.

According to the National Statistics Office, the largest chunk of the increase was reflected in a 14.5 per cent increase in the restaurant and hotels index due to higher priced accommodation services.

The clothing and footwear index also saw an increase, mainly due to a seasonal rise in the prices of garments.