Several food items earmarked for price reductions through a government scheme are unlikely to see big cuts at the supermarket till, if anything at all, a Times of Malta exercise shows.

On Thursday, the government announced that up to 400 basic food items would see their recommended prices lowered by at least 15% in a bid to curb inflation.

The recommended retail price (RRP) of an item is set by the importer, with shops then choosing to either sell at that price or compete by charging less.

More than 200 shops have signed up to the scheme which is expected to last until the end of the year.

So just how much do consumers stand to save? On some items, perhaps not that much.

A Times of Malta exercise, based on information given by industry sources, found that while some items already cost the consumer significantly less than the RRP, others are priced at similar levels to the planned cuts of 15%.

Brands of salted crackers, tinned tuna and semi-skimmed long-life milk can all be found at slightly lower prices than the planned reductions.

Pasta, meanwhile, is priced significantly less, with products at PAMA, Greens and Welbee’s supermarkets already costing a third below the recommended price.

Spaghetti from brands including Barilla, Rummo and Reggia cost between 30% and 40% less than the recommended prices in most supermarkets.

This means that cuts to this staple product are expected to be minimal, one supermarket source said.

Meanwhile, Frisian Flag semi-skimmed long-life milk, Elite tuna in sunflower oil and Pavesi crackers were found at either 16% or 17% less than the RRP in the same stores.

Shops can choose to sell at the recommended price or go even lower

Packs of Blue Angel tinned tuna were up to 30% less than the recommended price in one outlet, while staples such as cornflakes and Exeter corned beef were listed respectively at 12% and 8% less than the RRP in some shops.

Reductions on other items ranged from between 4% and 40%, with prices being checked in-store or online.

According to industry sources, the range of discounts already in place is even larger, though Times of Malta has not been able to verify the entire list.

Prices at smaller shops

In a number of smaller shops, however, many items were being sold at the full recommended prices without any reductions.

These are expected to drop by the full 15% when the scheme comes into force in February.

To cushion this blow, smaller retailers with a turnover of less than €800,000 a year will receive €125 per month from the government to make up for the reduction in profits, it was revealed on Thursday.

At Thursday’s announcement, Economy Minister Silvio Schembri said many convenience shops will probably reduce the entire 15%, but larger supermarkets could afford to reduce even more.

“Importers give supermarkets a recommended retail price. Supermarkets or shops can choose to sell at the recommended price or else go lower than that by reducing profits,” Schembri said. 

Importers and retailers had accepted the scheme as part of their corporate social responsibility, and that it was in their interest to have stability in prices because inflation had social and economic consequences, he said.

While the RRP does not equate to the price at the till, it represents the maximum price that can be charged for an item.

So, the closer to the RRP a retailer charges, the more of a reduction they will be forced to make.

Some shops display the RRP, while others choose not to.

Inflation has shot up across the board, but the spotlight has been especially on supermarkets which provide daily basic necessities.