UHM survey shows most prices stable

The UHM's ongoing pricewatch campaign as part of euro adoption has found that during December and January 91 percent of the 202 surveyed products saw no price changes. A further 1 percent had a drop in price and prices went up in the remaining 8 percent.

Union consultant Stefano Mallia said that most of the price increases involved dairy products and appeared to be linked to the increase in the international price of cereals. It was not clear, however, whether local price increases were equal to the increases abroad.

He said that between October and January, 64 percent of products had seen no price change but prices went up for a quarter of all surveyed products.

However a survey of 1,000 people showed that consumers felt that prices had not gone up and were unlikely to in the coming months.

Mr Mallia said there was no doubt that price stability agreements reached before euro adoption had contributed to price stability. The Union will continue its pricewatch until May and will monitor any movements once the stability agreements expire at the end of March, Mr Mallia said.