Eurozone Inflation Steady at 2% in July, Malta Remains Higher at 2.5%

In July 2025, Malta's annual inflation rate remained steady at 2.5%, slightly higher than both the European Union's average of 2.4% and the eurozone's rate of 2.0%. The main drivers of inflation in Malta were increased prices in food and non-alcoholic beverages, restaurants and hotels, and transport, while prices for communication and clothing declined. Across the eurozone, inflation held steady at 2.0%, aligned with the European Central Bank's target, with services contributing the most to overall inflation and energy prices continuing to decline. The broader EU inflation rate rose slightly to 2.4%, with notable variation among member states, ranging from as low as 0.1% in Cyprus to as high as 6.6% in Romania. The ECB maintained interest rates, adopting a cautious wait-and-watch approach amid economic uncertainties. Meanwhile, Malta’s inflation showed moderation in some sectors such as food and restaurants but saw faster price increases in housing, health, and transport, reflecting ongoing inflationary pressures despite the overall steady rate.