Malta’s Consumer Price Index Meets International Standards with Minor Adjustments Needed

VALLETTA - The National Statistics Office (NSO) of Malta has announced that its Harmonised Index of Consumer Prices (HICP) is largely in line with European Union legal requirements, with only minor adjustments needed to ensure compliance.

HICP: Measuring Inflation Trends

The HICP measures the change in prices of a basket of goods and services consumed by households, providing valuable insights into inflation trends. The NSO’s report highlights several areas where improvements are being made to enhance the accuracy and reliability of the index.

Improvements to Rent Survey

One key area is the treatment of actual rents, which have seen significant changes due to an influx of non-Maltese residents in Malta. To reflect this shift, the rent survey is being improved to better capture market trends and apply Eurostat’s recommended principles.

• The report notes that the small size of the Maltese market makes it challenging to measure package holidays.
• Alternative methods, such as collecting prices for flights and hotels, are being explored to improve data collection.

Other Areas of Improvement

Other areas where improvements are being made include:

• The treatment of seasonal products, such as fish and fruit
• The calculation of the index itself

Minor Adjustments Needed

While Malta’s HICP is largely compliant with EU requirements, there are some minor issues that need to be addressed. For example:

• The NSO is requested to supply the HICP at constant tax rates at the 5-digit level of ECOICOP.

Eurostat Assessment

Despite these minor adjustments needed, Eurostat has assessed Malta’s HICP as comparable to those of other EU Member States, indicating a high degree of consistency and reliability.

Commitment to Implementation

The NSO has committed to implementing the recommendations outlined in the report, which will further enhance the quality and accuracy of Malta’s consumer price index.