Inflation in Malta rose last month despite low international oil and cereal prices and in contrast with the situation in almost all the 16 members of the euro area where it hit rock bottom.

According to Eurostat, in March Malta again had the highest rate of inflation in the euro area. Cyprus too posted higher inflation.

Inflation in Malta reached 3.9 per cent, up from 3.5 per cent in February. On the other hand, the euro area's average saw a steep decline to just 0.6 per cent, down from 1.2 per cent - the lowest rate of inflation in the euro area has ever recorded.

Malta also recorded the highest 12-month average inflation rate in the euro zone, hitting 4.6 per cent in March - almost double the 2.7 per cent yearly average in the bloc.

The only positive indication comes from the comparison to March 2008, when Malta's inflation stood at 4.3 per cent.

Eurostat said the lowest annual rates in the EU as a whole were observed in Ireland (-0.7 per cent), Portugal (-0.6 per cent) and Luxembourg (-0.3 per cent), and the highest in Latvia (7.9 per cent), Lithuania (7.4 per cent) and Romania (6.7 per cent). Compared with February 2009, annual inflation fell in 22 EU member states and rose in four.

Meanwhile, local figures from the National Statistics Office showed that the harmonised index of consumer prices last month went up by 3.3 per cent over March of last year.