The government's Stabbiltà scheme, designed to keep the prices of basic food items stable, will end naturally since inflation has stabilised, Robert Abela has announced.

The scheme was launched last February when food importers and retailers were urged by the government to reduce the prices of selected items to control inflation.

The policy was intended to last until this year's budget. 

On Tuesday afternoon, the prime minister said that since inflation was no longer high, the scheme would not continue into next year.

The scheme dictated that when inflation dropped the scheme would have achieved its aim, Abela said. “The scheme will therefore die its natural death.”

Under the scheme, up to 400 basic food items had their recommended prices lowered by at least 15% in a bid to curb inflation.  

The products include different brands of corned beef, cornflakes, cream crackers, fresh and frozen minced beef and pork, packed fresh and frozen pork chops, frozen raw chicken legs, frozen raw whole chicken, frozen peas, broccoli and spinach, imported black tea bags, instant coffee including decaff, skipjack tuna in vegetable, soya or sunflower oil, standard low fat and reduced salt vegetable spreads, straight cut frozen friable French fries, UHT skimmed, semi-skimmed and whole fat milk in cartons or bottle wheat spaghetti and penne packets of all sizes

Last January, economy minister Silvio Schembri said that the target was to reach an inflation rate of around 2 per cent by the end of 2024. 

Inflation across the EU has been declining throughout the year. In Malta, annual inflation has been falling gradually this year but rose slightly to 2.3% in July.

Abela said the scheme, as well as energy subsidies, has helped curb inflation in Malta. Support to cushion energy costs will stay.

“Assistance on energy costs and fuels remains crucial, that is the primary measure which has helped our country battle inflation," he said.

It comes the annual cost-of-living adjustment looks set to increase by the lowest amount in years. 

The Malta Employers Association said COLA, which is added to employee's wages, is on track to increase by a minimum of €5 to €6 per week next year.

COLA is awarded to compensate for inflation over the previous year and is worked out on a fixed formula based on the cost of a basket of products and the minimum wage.