Spunt team forecasts COLA to be €4.66

As Malta looks ahead to the upcoming Budget, many are already anticipating the Cost of Living Adjustment (COLA) figure. This number is one of the key figures of the annual budget speech as it that affects workers, employers and public finances alike. COLA is a legally mandated annual wage increase intended to help workers maintain their purchasing power as inflation raises the cost of essential goods and services.

It is not an arbitrary political decision. COLA is calculated using a fixed national formula based on the average inflation rate over a specific 12-month period. This ensures that wage adjustments are tied to real changes in the cost of living rather than short-term pressures.

Using this established methodology, Spunt.mt projects the 2025 COLA to be €4.66. This figure was derived using confirmed inflation data for the current year and aligned with current economic trends. Major deviation from this estimate would likely require a sudden shift the remaining weeks. Malta’s inflation spiked after the pandemic, with this year's 2.03% average monthly inflation rate indicating that increases in the cost of living have finally stabilised.