Malta registered the lowest annual inflation rate in the European Union (0.7%) in September, according to statistics published by Eurostat, the statistical arm of the European Union.

The country was followed by Portugal (1.3%) and Greece (1.9%).

The highest annual rates were recorded in Estonia and Lithuania (both 6.4%) and Poland (5.6%).

Across the Eurozone, the annual inflation rate in September averaged 3.4%, up from 3% in August. This time last year, the Eurozone's annual rate stood at a deflationary -0.3%.

Malta also registered lowest in the EU when calculating the monthly rate in September: while the EU averaged 0.5% inflation last month, Malta registered a deflationary -0.9%. 

Graphic: Eurostat

Eurostat measures inflation using the Harmonised Index of Consumer Prices,  which measures the change over time in the prices of consumer goods and services acquired. 

Compared with August, annual inflation fell in one member state, remained stable in another and rose in 25.

Eurostat said that the annual inflation rate in the euro area was 3.4%, up from 3% in August. A year earlier, the rate was -0.3%.

Policymakers across the world have been keeping a keen eye on inflation in recent months, with rates creeping up after years of historic lows. High shipping costs and strained supply chains have both been blamed for edging prices higher.