In August 2017, the annual rate of inflation as measured by the Harmonised Index of Consumer Prices (HICP) remained at a constant rate of 1.2%, Eurostat, the EU's statistical body announced this morning.

The largest upward impact on annual inflation for Malta was registered within the Restaurants and Hotels Index, by 0.28 percentage points, which is a reflection on the higher prices of restaurant services, inclusive of cafes and similar eateries.

On the other hand, the communications index caused a downward impact on inflation, by 0.08 percentage points, mainly attributable to lower mobile phone prices, as highlighted by the National Statistics Office of Malta.

Malta registered the eighth lowest rate of inflation within the EU, with the Euro area registering an average rate of 1.5% for the same period. 

Euro area annual inflation was 1.5% in August 2017, up from 1.3% in July 2017. In August 2016 the rate was 0.2%. European Union annual inflation was 1.7% in August 2017, up from 1.5% in July 2017. A year earlier the rate was 0.3%.

The lowest annual rates were registered in Ireland (0.4%), Cyprus (0.5%), Greece and Romania (both 0.6%). The highest annual rates were recorded in Lithuania (4.6%), Estonia (4.2%), and Latvia (3.2%). Compared with July 2017, annual inflation rose in twenty Member States, remained stable in five and fell in three.

The largest upward impacts to the euro area annual inflation came from fuels for transport (+0.16 percentage points), accommodation services (+0.10 pp) and air transport (+0.06 pp), while telecommunication (-0.12 pp), vegetables (-0.05 pp) and social protection (-0.04 pp) had the biggest downward impacts.