Malta experienced a slight decrease in its annual inflation rate, which fell to 2.5% in June 2025 from 2.7% in May. The reduction in inflation was attributed to moderated price increases in several sectors, including transport, which slowed to 3.6% from May's 5.6%; miscellaneous goods and services at 3.9% down from 4.3%; education at 5.2% from 5.6%; health at 2.7% compared to 3%; recreation and culture at 1% from 1.2%; furnishings, household equipment, and routine household maintenance, which decreased to 0.1% from 0.4%; and housing and utilities at 0.6% from 0.7%. Communication continued to experience deflation at an unchanged rate of -3.6%. Conversely, the prices for alcoholic beverages and tobacco rose more quickly, increasing to 2% from 1.8%, and there was an uptick in prices in the restaurant and hotel sector, moving up to 4% from 3.3%. Prices remained steady for food and non-alcoholic beverages at 4.2%. Furthermore, the costs for clothing and footwear stabilized after experiencing a 0.7% decrease previously. On a monthly comparison, consumer prices rose by 1.2% in June, a deceleration from a 1.7% rise in May.