The government must be ready to take measures in the face of rising prices brought about by imported inflation, Finance Minister Clyde Caruana told parliament.

In a speech on Tuesday, Caruana said "substantial amounts" running into the millions had already been dedicated to keeping fuel and energy prices stable.

Other countries, he said, had passed on these price increases to consumers.

The finance minister said rising tensions between Russia and Ukraine could further impact gas and wheat prices, as both countries are major wheat exporters.

Caruana said the government will continue to monitor developments and must be ready to take all the necessary measures if these product prices continue to rise.

He said the government wants to avoid placing a burden on the economy while it is still recovering from the impact of the COVID-19 pandemic.

The finance minister said the government is exploring an additional mechanism over and above the annual cost of living increase.

He said these measures would be targeted towards those in lower income brackets most impacted by rising prices.

Caruana said the finance ministry had already undertaken studies about how this mechanism would work.

Times of Malta on Tuesday quoted a leading economic saying consumers can expect prices of food and other essential goods to keep climbing until after the summer.

Gordon Cordina told Times of Malta that the rate of inflation in the cost of basic goods was expected to continue to be above normal until at least the end of the third quarter.