Inflation eased last month as the index of consumer prices dropped by 0.1 per cent over the previous month, but it was not enough to push the annual rate of inflation into negative territory, leaving Malta one of only four eurozone countries to register an increase.

Figures released by the National Statistics Office yesterday showed inflation in July stood at 0.8 per cent over the same month a year before. It was the lowest rate of the year so far. In June the figure had been of 2.8 per cent and in May 3.4 per cent. The peak this year was reached in April with four per cent.

Meanwhile, statistics published by Eurostat confirmed Malta experienced the second highest inflation rate in the eurozone after Finland. Apart from Greece and Slovakia, all other eurozone countries moved in the other direction in July.

The NSO attributed the month-on-month drop in consumer prices here to lower prices for clothing and footwear due to seasonal changes. The clothing index declined by 7.6 per cent.

Price decreases for fruit dragged down the food index by 2.2 per cent while lower prices were also registered for recreational and sporting services.

On the other hand, the transport index went up by 3.8 per cent owing to the increase in fuel prices. In line with seasonal trends, higher prices were also registered for accommodation services in the tourism sector.

The housing, water and electricity index increased by 0.6 per cent.

The 12-month moving average rate of inflation, which compares the average of the 12 months up to July with the same period a year before, stood at 3.9 per cent, the highest in the eurozone.