This initial release contains the results of the interim HICP, covering the period January 1996 to December 2002 and with a base period in 1996.

This was substantially compiled on the basis of data that was originally collected for Retail Prices Index purposes.

A new HICP series with a base period in December 2002 was introduced in January 2003.

The HICP will henceforth be published on a monthly basis.

The HICP is used to compare inflation rates across the European Union.

Indeed, it was developed in the EU for the purpose of assessing whether prospective members of the European Monetary Union would meet the inflation convergence criterion.

Therefore, HICP inflation is not comparable to the inflation rate compiled on the basis of the Retail Prices Index due to the various coverage and methodological differences between the two indices.

A full dataset in respect of both the interim and the new series HICP is available on the NSO’s website at www.nso.gov.mt