In April 2025, Malta's annual inflation rate rose to 2.4%, up from 2.1% in March, according to the National Statistics Office. What stands out is that the biggest contributor was food inflation, adding 0.73 percentage points to overall annual inflation. While these figures may appear moderate, their social implications are anything but.
By comparison, the euro area maintained an annual inflation rate of 2.2%, unchanged from the previous month, as reported by Eurostat. Services were the primary driver of inflation across the eurozone, followed by food, alcohol, and tobacco. The lowest annual rates were registered in France (0.9%), Cyprus (1.4%) and Denmark (1.5%). The highest annual rates were recorded in Romania (4.9%), Estonia (4.4%) and Hungary (4.2%).
Malta's slight increase in inflation is not just a matter of numbers-it's about the essentials that households rely on most. It is important to remember that inflation on basics such as food has a greater social impact on low-income earners, as it consumes a larger proportion of their income. When prices for bread, milk, vegetables or meat rise, it's not a simple inconvenience. For many families, this has an impact on everyday lived experience: It may mean cutting meals, compromising on nutrition, reducing important expenditure elsewhere, or turning to debt. This deepens already existing inequalities and hits those who are least equipped to absorb the shock.
From a sociological standpoint, this reminds us that economic policy cannot be separated from social realities. We must move beyond seeing inflation as a sterile statistic. Instead, we need to ask: who is affected most, and how?
This is where social impact assessment (SIA) becomes essential. Policymakers need robust quantitative and qualitative tools to evaluate how inflation and related measures affect different groups- such as the most vulnerable and the working poor. Without such assessments, well-intentioned policies risk widening the gap between those who manage inflation comfortably and those who struggle daily.
Bread and butter issues still matter. Food affordability, transport costs, energy bills, and rent are not abstract concepts-they are central to people's lives and to social cohesion
In Malta, where the cost of living is constantly on the public agenda, we therefore need an evidence-based integrated approach that blends economic policy with social sensitivity. Supporting local producers, ensuring fair pricing in essential services, strengthening social safety nets, and improving transparency in retail markets are some of the steps that can make a difference.
Inflation is a deeply human issue. It affects how people live, what they eat, and whether they can participate meaningfully in society. It's time for policy to reflect this lived reality.
Prof. Michael Briguglio is an Associate Professor at the Department of Sociology, Faculty of Arts, University of Malta
www.michaelbriguglio.com