MLP demands action to rein in inflation
The Labour Party in a statement this morning expressed concern over persistent inflation and said it was especially concerned that the government was doing nothing about it.
It pointed out that according to official Maltese and EU statistics, the cost of living rose steeply in March and Malta was now with the highest inflation growth rate in the eurozone.
The current rate was the highest in three years and 0.7 percent higher than the eurozone average.
The MLP said prices were rising fastest for the most important items including food,which was up 9 percent over the past year, clothing and education, up 6 percent and medicines, up 3 percent.
Although international price rises were reflected in domestic prices, inflation could not be wholly attributed to such external factors, the MLP argued. Had that been the case, inflation here would be at the same rate as other countries.
In March, food prices in Malta rose at 150 percent the rate of increase in the EU, while the prices of clothes and medicines rose by six times and twice the rate of increase in the EU respectively.
The MLP warned that such price hikes eroded living standards and Malta's competitiveness, the situation having been made worse by the increase in fuel prices, particularly that of diesel.
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In Discussion
4 Comments
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Malcolm Seychell
Apr 20th 2008, 00:13
Maybe they should suggest bulk buying again, price freeze.
The more they talk, the more they damage the party.
Every person with a healthy mind, knows that inflation is due to a rise in prices on basic needs such as food and oil
Malta cannot do anything in reality. Only the EU can take a drastic measure, which I think it should to protects its citizens.
Prices in Malta would always be a bit higher because we are an island, cannot achieve economies of scales, etc etc.
However this is very hard for the MLP administration to realise.
The only way inflation can be controlled, is by lower taxes, that public spending is controlled,abuse from social services be minimised and we should be more productive
Oil Prices are also another factor. Dr Sant before election said oil prices will go down. Like always he was wrong, because they are going up.
JOHN SCERRI
Apr 19th 2008, 20:47
MLP has a taken the habit to DEMAND this and that.
MLP should research and find out what is going on around the world and not box itself in .
MLP, by the way, should have had plans to control inflation had it been elected in power .
MLP was ready.
MLP even promised to half the energy surcharge
How about if MLP submits its famous proposals to control inflation to the Govt , if there are any after all.
The only measures the Govt. can take is to reduce income tax and reduce direct taxation to increase purchasing power 'per capita' .
George Caruana
Apr 19th 2008, 17:00
MLP demands action to rein in inflation. Such as?
William Gatt
Apr 19th 2008, 16:21
And what course of action would MLP suggest? As far as I know governments in general cannot do much about rising prices but order price controls or freezes, and these are normally damaging as they distort the underlying message of value (the price) of a commodity and thus encourage waste. It is monetary policy, the responsability of the European Central Bank, which is used to control the rate of price increase; and the ECB is indeed worried and acting against this phenomenon (by not lowering interest rates despite world output expected to slow down).
I'd really like to hear some suggestions from the labour party.