Food inflation has dipped by 1.2% between January and February, as a government scheme to cut prices of up to 400 food items by 15% came into effect, but food prices remain 5.5% higher than they were a year ago, according to newly-published NSO figures.
The data suggests that the dip in food inflation would have been even sharper, at 1.8%, if the still-rising cost of restaurants and takeaways was not taken into account.
The data is taken from the Retail Price Index, one of the measures used across Europe to calculate the cost of living.
Overall inflation has remained identical to what it was in January, only shrinking marginally by 0.1%, with the cost of housing and transport also showing almost negligible dips.
But it’s bad news for shoppers, with the cost of clothes and footwear increasing by 1.4% from the previous month.
On the whole, life remains more expensive than it was in February last year, with the data showing that prices across the board were 2.3% higher in February this year compared to last.
However, the data reveals a longer-term dip in inflation, with the 12-month moving average shrinking consistently from one month to the next, after the highs experienced throughout 2023.
Several surveys carried out throughout the past year revealed that the rising cost of living was the top concern for most people in Malta, driving the government to strike a deal with importers and supermarkets to slash the prices of several food items from February 1.
Food prices initiative having substantial impact - ministry
The Economic Services Ministry welcomed the latest data, saying it confirmed that the government's initiative to stabilise the prices of essential food items, introduced on February 1, was necessary and already having a substantial impact.
It observed that inflation in February, at 2.3%, was 0.9% below that of January, a sharper drop from the previous five months combined.
Food price inflation between January and February was down by 1.2% and it was clear that the “Stabbiltà” initiative was key for this drop.