PN urges government to act as Malta’s inflation outpaces EU average

The Nationalist Party called on the government on Tuesday to adopt its proposals for a different economic model after Eurostat figures revealed that Malta’s inflation was higher than the EU average for May.

The figures “confirm” that cost of living in Malta continues to surge, with the national rate significantly exceeding the eurozone average, the PN said in a statement.

Eurostat data reveal that while the Euro area annual inflation dropped to 1.9 per cent in May from 2.2 per cent in April, Malta’s inflation stood at 2.6 per cent, marking an increase over the same month last year. The figures also show that the cost of living in Malta has been rising steadily month after month since the start of the year.

“While most eurozone countries are seeing prices stabilise or fall, Malta is going in the opposite direction,” the Shadow Minister for the Fight Against Rising Cost of Living Ivan Castillo said.

He pointed out that Malta’s rate is higher than countries such as Germany, Ireland, Spain, France, Italy, Cyprus, Portugal, Luxembourg, and Slovenia, many of which have registered a decrease.

The biggest contributors to the rising cost of living are food prices and the cost of services, he added.

Castillo slammed the government for being “out of touch with people’s struggles” and for rejecting the PN’s proposals “which enjoy widespread support”.

He called on the government to “set aside partisanship” and implement the proposals which include the abolishment of the tax on the first €10,000 earned from part-time and overtime work; making the cost-of-living-adjustment non-taxable; providing tax credits to employers to help them absorb increased costs without raising prices.

The Opposition also suggested a National Fund should be established to support importers and exporters in managing costs that impact inflation, and an economic model based on emerging sectors should be adopted to create quality jobs with better pay for workers.