The Harmonised Index of Consumer Prices dropped to 108.66 from 112.00 in November from October, the National Statistics Office said today.

It attributed the decrease to a drop of 13.8 percent in the Restaurants and Hotels Index, caused by seasonal reductions in accommodation services. Price reductions in package holidays caused the Recreation and Culture Index to decrease by 2.0 per cent. A decrease of 1.2 per cent was registered in the Transport Index, mainly due to lower air fares.

A downward shift of 1.1 per cent was recorded in the Food and Non-alcoholic Beverages Index, mainly on account of lower prices of fish and vegetables.

The NSO said the Alcoholic Beverages and Tobacco Index went up by 3.4 per cent as a consequence of higher tobacco prices. Seasonal price increases of garments caused the Clothing and Footwear Index to rise by 2.7 per cent.

In November, the 12-month moving average rate of inflation stood at 4.5 percent (from 4.4 percent in October), whereas the annual rate of inflation stood at 4.9 per cent, down from 5.7 percent in the previous month. The decline is in line with decreases across Europe, although Malta's inflation rate remained one of the highest in the eurozone.

Euro area annual inflation was 2.1% in November 2008, down from 3.2% in October. A year earlier the rate was 3.1%. Monthly inflation was -0.5% in November 2008.