GRTU calls for plan of action to tackle inflation

The GRTU has added its voice to those expressing concern over galloping inflation and has urged the government to identify the causes of inflation and produce a plan of action after due consultation with all stakeholders.

The retailers' association said it was useless for the Office of Fair Trading (OFT), the National Euro Changeover Committee (NECC), the National Statistics Office (NSO) and other inspectors to go out and pester retailers and service providers about current prices of goods and services, unless the government analysed what was causing the annual rate of inflation in Malta to keep soaring.

"GRTU's analysis shows clearly that there is no evidence that inflation is caused at the retailer level. The prices exhibited at retail outlets are a mirror of what goes on in the economy," the association said.

"Government induced costs, other charges hiding inefficiencies and bureaucratic burdens plus numerous incompetences in the whole distribution network, not least also unfair impositions by monopolies in the public private and financial sector are to blame for the inter cost push inflation rate."

It said a rate of inflation of 3.9% is historically very high for Malta.

"Retailers are currently absorbing exceptional level of expenses to keep their head above water to compete in a highly competitive international market.

"Retailers have no control on the electricity surcharge, bank charges, port dues, diesel prices, tax rates and numerous other induced costs and bureaucratic burdens. They are not responsible for the inefficiencies at the fisheries, pitkalija and other unreformed institutions.

"The government should clearly identify the causes of inflation and produce a plan of action after due consultation with all stakeholders," the GRTU said.