The annual rate of inflation remained at a constant rate of 2.5 per cent in July, the National Statistics Office said on Wednesday.

The largest upward contribution to the overall annual inflation was registered in the Food and non-alcoholic beverages Index (+0.64 percentage points), largely due to higher prices of meat. The second and third largest contributions were measured in the Restaurant and hotels Index (+0.62 percentage points) and the Transport Index (+0.54 percentage points), mainly on account of higher prices of restaurant services and air transport services, respectively.

The downward contributions to the overall annual inflation were registered in the Communication Index (-0.11 percentage points) and the Clothing and footwear Index (-0.01 percentage points), mainly reflecting lower prices of mobile phone equipment and footwear. 

In a reaction, the Nationalist Party said Malta’s cost of living in July, at 2.5%, was higher than the average for both the European Union and the eurozone.

The EU average stood at 2.4%, while the eurozone average was 2.0%.

“While other European countries such as France, Germany, Cyprus and Italy are benefitting from concrete measures against inflation, Maltese families and businesses are left carrying the burden of a government that remains paralysed in the face of this crisis and the everyday realities of the Maltese and Gozitan people,” the PN said. 

The statement was signed by Ivan Castillo, shadow minister for the Fight Against the Rising Cost of Living.

In a reaction, the Labour Party said the government was continuing to protect Maltese and Gozitan families whereas, it said, the Nationalist Party had asked them to make sacrifices and to get accustomed to high electricity bills when it was in government.

“With the Labour government, the people know where they stand, because while it has managed to moderate inflation and remain sensitive to the realities, it introduced several measures to boost household income including the biggest tax-cut in history, the tenth increase for pensioners and a further sharp increase in the Children’s Allowance for more than 60,000 children,” the PL said.