Updated 10.40am

The prime minister is announcing details of a government initiative to encourage importers and retailers to push down the prices of basic food items. The details are being announced at a press conference during which an agreement will be signed with importers and major retailers. 

Earlier this month Times of Malta revealed the scheme to reduce the recommended prices of a range of staple grocery products by up to 15 per cent as inflation continues to bite.  

Industry insiders said operators were being asked to lower the recommended retail price (RRP) of around 15 products such as tea, coffee, long-life milk, pasta and tinned tuna, among others. 

Welbee’s and PAVI and PAMA supermarket chains are among those who have agreed to the scheme.

The reductions will last for most of this year.

The Chamber of Commerce on Sunday hit out at the plans, saying the government's actions amounted to price control that was reminiscent of decades ago when consumer protection came at the expense of consumer choice, and the government controlled the market instead of promoting competition through proper monitoring and regulation. 

But Prime Minister Robert Abela reacted quickly, saying that while inflation was falling for many items, food appeared to be an exception, and the government would continue to work to bring stability in this sector too.