Pasta, black tea and cream crackers are just some of the items set to have their recommended prices reduced in less than two weeks, according to a list of products seen by Times of Malta.

It comes as the economy ministry pressures importers and retailers to reduce the recommended retail price (RRP) of certain staple groceries by up to 15 per cent.

Welbee’s, PAVI and PAMA supermarket chains had reported already agreeing to the measure.

And according to industry sources, the “absolute majority” of operators have now signed up.

The move follows around 18 months of consumer concerns around inflation, with grocery shopping frequently highlighted as a noticeable rising expense.

Following news of the scheme, the full preliminary list of products slated for reductions has been shared by industry insiders.

Everyday cupboard staples such as long-life milk, canned tuna, cornflakes, and instant coffee are set to be included alongside vegetable spreads, fresh and frozen meat products, frozen vegetables, and frozen french fries.

These products are all set to see a reduction in price. Graphic: Christian Busuttil

In total, 15 types of products covering all brands have been listed by the ministry as requiring price reductions, although it is understood the list could change before the final announcement later this month. 

Sources say the list was circulated widely among operators by the economy ministry when it first started discussing the plans with the sector.

And while some have said the list has been revised following individual negotiations with Economy Minister Silvio Schembri, others have reported it remaining unchanged since first being issued.

No compensation

According to industry sources, importers and retailers are being asked to absorb the cost of the scheme, with no form of compensation such as tax rebates or tax credits offered to cushion the blow.

Some insiders have said they will “probably” have to inflate the prices of other products to make up for any potential losses.

We’ve gone backwards, not forwards

One source said the discussions had felt like bullying, with the agreements pushed onto operators by the economy ministry.

Insiders claimed that the ministry has said it will fund a publicity campaign to promote the scheme.

One source derided this tactic as nothing short of political manoeuvring to put the government in a good light. The source said those not signing up would be made to look as if they were charging exorbitant prices by comparison.

The comments reflect widespread anger at the scheme among industry stakeholders, with one saying the move felt like “going back to the 1980s”, in reference to the time when the government decided the price of some grocery items.

“We’ve gone backwards, not forwards,” one source said.

However, despite fears the scheme could put companies at risk of breaching anti-trust laws which prohibit price-fixing, the move is likely to come as welcome news to consumers, who have had to grapple with steady price hikes blamed by importers on increased shipping costs and the war in Ukraine. 

And only this month, an EU environment tax, called the Emissions Trading System, was extended to the maritime sector, raising fears of further importation price hikes.

According to industry sources, the list of products included in the upcoming scheme was selected from the retail Price Index, a list of items commonly found in shopping baskets which are price-tracked to measure movements in the cost of consumer goods.

In November – the latest month for which there is data available – the National Statistics Office said the largest upward impact on annual inflation was measured in the food index, which rose by 1.62 percentage points.

This stood in contrast to the annual rate of inflation falling slightly that month from 3.7 per cent to 3.6 per cent.