The latest Government and Eurostat figures showed that the annual rate of inflation in Malta was almost twice that of the eurozone during the same period, the opposition spokesman on finance said today.

The figures showed Malta's annual rate of inflation at 6.8%.

Dr Mangion said joining the eurozone was meant to gear Malta with the economic cycle of the eurozone. The fact that inflation in Malta was consistently higher than the eurozone average was worrying because this could impact badly on competitiveness and negatively affect Maltese and Gozitan families.

Dr Mangion insisted that the government was wrong to blame high international oil and food prices for the inflation growth. For even when they were eliminated, the cost of living in Malta had still increased from 2.8 per cent in January to 4.3 per cent in July, the steepest increase in the eurozone. The euro zone average remained stable at 1.7 per cent.

The Finance Ministry in a reaction to Dr Mangion's statement said the Labour MP was saying nothing new. It pointed that the economy was continuing to grow and create jobs, despite the international turmoil.

The ministry said the situation with regard to the impact of oil and food prices on Malta was already explained in other statements issued over the past few weeks.