Issue link: https://maltatoday.uberflip.com/i/1517660
5 maltatoday | WEDNESDAY • 20 MARCH 2024 NEWS KURT SANSONE ksansone@mediatoday.com.mt INFLATION dropped to 3% in February with the decrease largely attributable to a slow- down in food inflation, data released on Monday by the Na- tional Statistics Office shows. The annual rate of inflation as measured by the Harmonised Index of Consumer Prices (HICP) dropped by 0.7 points in February when compared with the previous month. The HICP is the measurement used across the EU to be able to compare inflation across the 27 member states. Malta's annual inflation rate in February was 0.4 percentage points higher than the 2.61% registered for the euro area. The NSO said that the larg- est upward impact on annual inflation was measured in the Food and non-alcoholic bever- ages Index (+1.22 percentage points), largely due to higher prices of milk. However, when compared to January food prices increased at a slower pace thus contrib- uting to the overall reduction in inflation. The NSO statement does not attribute the slowdown in food prices to the govern- ment-sponsored food price stability scheme, Stabbiltà, that came into force on 1 February. However, on X, Prime Min- ister Robert Abela said the Eu- rostat figures "have confirmed" that the Stabbiltà programme "has lowered inflation greatly". In February, Maltese con- sumers started benefitting from price reductions on sev- eral food products after the government reached an agree- ment with major importers and supermarket chains. The Stabbiltà scheme lowered the prices on 15 categories of ba- sic foods and the arrangement, which started on 1 February, is set to remain in place until the budget in October. The reduction had to be a minimum of 15% on the recom- mended retail price (RRP) set by importers and producers on 31 October last year. In many in- stances, the actual price reduc- tion amounted to a few cents, especially on products bought at large supermarkets. In a comment on Facebook, Economy Minister Silvio Schembri said the HICP data "confirmed the need and effec- tiveness" of the stability scheme. "This does not mean that we have reached our goal, but we are reaping the results of our work and as a government we remain determined to continue fighting inflation," Schembri said. The HICP index shows that apart from food and non-alco- holic beverages, the second and third largest upward impacts were measured in the Restau- rants and hotels Index (+0.61 percentage points) and the Housing, water, electricity, gas and other fuels Index (+0.41 percentage points), mainly on account of higher prices of res- taurant services and rents, re- spectively. The downward impacts on annual inflation were regis- tered in the Communication Index (-0.39 percentage points) and the Recreation and cul- ture Index (-0.09 percentage points), mainly reflecting lower prices of mobile phone services and package holidays, respec- tively. Inflation down in February as food prices increased at slower pace Annual inf lation in February decreased to 3%, according to the HICP index released by the NSO and Eurostat, largely due to a slowdown in the rate of increase of food prices When compared to January, food prices increased at a slower pace in February thus contributing to the overall reduction in inflation THE euro area annual inflation rate was 2.6% in February 2024, down from 2.8% in January. A year earlier, the rate was 8.5%. European Un- ion annual inflation was 2.8% in February 2024, down from 3.1% in Jan- uary. These figures were published by Eurostat, the statistical office of the European Union. The lowest annual rates were registered in Latvia, Denmark (both 0.6%) and Italy (0.8%). The highest annual rates were recorded in Romania (7.1%), Croa- tia (4.8%) and Estonia (4.4%). Compared with Jan- uary, annual inflation fell in twenty Member States, remained stable in five and rose in two. In February, the high- est contribution to the annual euro area infla- tion rate came from ser- vices (+1.73 percentage points, pp), followed by food, alcohol & tobacco (+0.79 pp), non-energy industrial goods (+0.42 pp) and energy (-0.36 pp). Annual inflation down to 2.6% in the euro area