Annual rate of inflation unchanged but economic sentiment hit hard
The annual rate of inflation remained unchanged from September to October, a first for 2022, but economic sentiment took a hit across almost all sectors as fears of a downturn picked up speed. It is not just business owners that are expecting the worst: price expectations increased across all sectors, most notably among consumers. But while cost of living concerns are gnawing at economic confidence, locals are still, by and large, saving up: Maltese residents’ deposits expanded at an annual rate of 8.4% in September, following an increase of 7.2% in the previous month, and the annual growth in credit to Maltese residents stood at 8.8% in October. That data emerges from the Central Bank’s economic update for November, published on Friday. The update provides a broad overview of the Maltese economy, public finances and economic sentiment throughout the country. Confidence Data suggests consumers are among the most pessimistic about the economy’s prospects, with confidence indicators showing that they were less hopeful in October than they were in October 2020, at the height of the COVID-19 pandemic. Industry confidence is also significantly negative, though it is marginally...