The annual rate of inflation in July rose at a faster rate than the previous three months, reaching 6.8 per cent from 6.1 per cent in June, official data issued on Thursday showed. As in previous months, most of the rise was fed by food prices.

The 12-month moving average rate for July stood at 3.7 per cent. 

"In July 2022, the largest upward impact on annual inflation was registered in the Food and non-alcoholic beverages Index (+2.00 percentage points), largely due to higher prices of meat. The second and third largest impacts were measured in the Restaurants and hotels Index (+1.29 percentage points) and the Housing, water, electricity, gas and other fuels Index (+0.88 percentage points), mainly on account of higher prices of restaurant services and house maintenance services respectively," the NSO said.

There were "no downward impacts" it added, meaning that no sector saw lower prices. 

Inflation only rose faster between March and April.

Higher inflation than the euro area in June, when energy is excluded

The NSO also pointed out inflation in Malta in June was 6.1 per cent, 2.5 percentage points lower than the 8.6 per cent registered for the euro area.

But when energy prices and unprocessed food are taken out of the equation - energy prices having been frozen here -  the annual inflation rate in Malta was 6.2 per cent, 1.6 percentage points higher than the 4.6 per cent registered for the euro area.

Times of Malta reported earlier this month that galloping inflation will mean that the statutory cost-of-living wage increase (COLA) announced in the budget will be around €10 weekly. That is based on the prices of a pre-determined basket of products agreed years ago between the government, employers and trade unions.

COLA was just €1.75 last year.

The possibility of such a steep COLA increase, the highest ever, has worried employers, with some expressing fear for their competitiveness. The Chamber of Commerce said last week that employers should not have to pay the full cost-of-living-adjustment for workers whose salaries went up this year.

Instead, workers who have received some form of pay rise should only receive the difference between that increase and the 2022 COLA.

But the General Workers' Union warned on Wednesday that any proposals by employers to not give the COLA to all employees would be against the law.

It said it would  not accept any changes to the way the cost-of-living adjustment is worked out, pointing out that the mechanism has been in place for 32 years.