The highest inflation rate in the last two decades is hurting vulnerable families as the country is still experiencing a higher inflation rate than the EU average. While almost everything is getting more expensive, the worst is the rising costs of essential staples like food.
Most households tend to hold back on buying luxury goods in times of high inflation. But by and large, people cannot cut down on necessities such as groceries. Wealthier consumers are better placed to address the effects of high inflation by dipping into their savings.
What economists call inflation inequality is hitting the poorest hardest.
The NGO Foodbank Lifeline Foundation, which feeds hungry families, has expressed concern about the effect of high inflation on its invaluable work among the most vulnerable in society. It says it is being forced to pay almost 40 per cent more for food packs than two years ago.
Foodbank Lifeline Foundation manager Barbara Caruana told Times of Malta: “We are seeing a trend of families that still need help even after six months of us providing for them”.
She added: “We cannot turn them away. We are also seeing older couples who are not managing to make ends meet with their pension.”
The pincer effect of high inflation on NGOs that work on the coalface of poverty in the country is made even more painful as fewer donations are flowing. Unsurprisingly, even some students and their families are struggling with higher inflation.
These sobering realities should nudge the conscience of societal leaders and the whole community to examine what needs to be done to respect the dignity of all people, including those with limited financial clout.
The primary responsibility falls on the shoulders of our political leaders, who have the means to bridge the widening gap between the haves and the have-nots in our society.
These sobering realities should nudge the conscience of societal leaders and the whole community
Sadly, it has become customary to hear of examples of the waste of taxpayers’ money in the public sector due to political cronyism, nepotism, and mismanagement. It is time to curb greed and invest the savings from this exercise to lighten the pressure on people experiencing poverty.
NGOs that work among the most vulnerable in society must be helped to complete their mission even when donations from the public dry up. They are the most reliable medium to ensure minimal leakage of money donated by generous individuals. While it is crucial that NGOs are held accountable for the way they manage public donations, they must be helped to respond to the pressing needs of the poor speedily.
While we operate in a free market, importers and operators must stop inflating prices without any justification and they have to reduce prices if certain importation or operational costs have stabilised. Ultimately, those abusing the system need to understand that they will end up paying for their own greed in terms of higher salaries.
Finance Minister Clyde Caruana has repeatedly warned of potential cartels and tacit collusion by large companies, adding to the prices of hundreds of goods and services that were already under pressure after the pandemic and Russia’s invasion of Ukraine.
If this is really the case, then it is immoral and will hit the so many low-income families, especially those with children, the elderly, and exploited migrant workers, struggling to make ends meet this Christmas. A society that has little respect for those in need is morally bankrupt. We all need to do our bit.