Inflation down further

Malta's inflation rate fell by 0.4 per cent to 1.8 per cent last month, the biggest fall in the rate it has seen in the last 12 months.

However, inflation is still the highest in the euro area, which stood at just 0.3 per cent, even as the average in the 16-member eurozone rose by 0.9 per cent, a further indication of economic recovery.

Eurostat said the lowest 12-month average up to December was registered in Ireland (-1.7 per cent), Portugal (-0.9 per cent) and Spain (-0.3 per cent), and the highest in Romania (5.6 per cent), Lithuania (4.2 per cent), Hungary and Poland (both four per cent).

The main components with the highest annual rates in December were alcohol and tobacco (4.8 per cent) and transport (3.5 per cent), while the lowest annual rates were observed for food (-1.3 per cent), communications (-0.8 per cent), and housing (-0.3 per cent).

Fuels for transport (0.42 percentage points) and tobacco (0.13) had the largest upward impact on the inflation rate, while gas (-0.33) and cars (-0.10) had the biggest downward impact.