Ivan Camilleri Brussels
Rise in food prices second highest in euro area
Malta has experienced the second highest rise in food prices in the eurozone, according to a special report on food prices issued yesterday in Brussels.
Food prices are shooting up all over the EU but Malta's annual rise was exceeded only by Slovenia.
Calculated on a 12-month average, food prices on the island in April rose by 9.7 per cent when compared to a year earlier. This amounts to more than twice the inflation rate which during the same month stood at 4.1 per cent.
In Slovenia, the hike in the food bill was of 12.4 per cent.
Overall, food prices in the 15-member euro area rose by 6.2 per cent, according to figures released by Eurostat, the EU's statistical arm, in a special report on food prices.
The highest spikes in Malta were noted in the price of food items related to oils and fats which jumped 15.8 per cent in just one year. In the euro area, these items rose in price by 8.3 per cent.
The cost of fruit, a major part of which is grown locally, also shot up by 15.4 per cent, much higher than the 8.2 per cent increase registered in the other euro area member states.
Contrary to what happened in the euro area, where the price of vegetables was the only food item to fall in the past 12 months (-2.2 per cent), in Malta it went up the rungs by 13.8 per cent, by far the highest increase in the euro area.
Other major increases in Malta were registered in the price of bread and cereals (+10.9 per cent) and milk, cheese and eggs (+14.2 per cent).
On the other hand, although still rising, the price of meat products increased by only 3.6 per cent which is the same rate as in the euro area.
But again, the price of fish and seafood galloped well ahead of the euro area, up by 7.1 per cent compared to a 3.1 percentage increase.
The price of food is going up across the globe due to higher demand and poor harvests, and Malta imports a higher proportion of food when compared to the rest of the EU member states. This may partly account for the explosion in prices here.
However, another factor may be lack of competition, highlighted by the European Commission in a report on the euro area economy a few weeks ago.
Brussels had stated that "due to its small size, a few food importers dominate the market, thereby hindering effective competition."
17 Comments
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Kamal Awad
Jun 5th 2008, 18:31
Dear R. Gauci
Thank you so much for your comment. I welcome exchanging views and share.
Should you be interested please have a look at the Britons survey I mentioned. You can read it at timesofmalta.com - back issues - 9 May (its still there on line imma it would expire on 8 June, I mean within 2 days)
Here I quote a paragraph
Britons throwing away a fortune in food
Andrew Hough, Reuters
The amount of good food Britons throw away unnecessarily is at record levels, according to a study published yesterday, costing the economy £10 billion a year.
More than half of the 6.7 million tons of food that households throw away annually is still edible, the study from the Waste and Resources Action Programme (WRAP) revealed.
About £1 billion worth of wasted food is still "in date", the The Food We Waste report concluded, while about £6 billion of food was bought but left untouched.
I am sure you will find it interesting.
Catch you later
JOHN SCERRI
Jun 4th 2008, 22:35
..........And the end of June 2008 is still to come .
I honestly hope that the Finance Ministry and other Ministries responsible for providing service to us citizens have been sourcing options on what measures will be taken to minimize the burden of the sky rocketting rate of price increase of essential goods .
I hope the government will not wait for Budget 2008 in order to reduce taxes - direct taxes - income tax - revision of tax bands - special rebates for poverty line people and minimum wage earners.
Global oil, fuel, and food prices are not increasing once a year but on a nearly daily basis. Manufacturing industries are raising prices to break even with their operational expenditures 'OPEX' and at the same time keeping back from capital expenditure 'CAPEX'
for the time being.
Very seriously studied measures must be adopted as soon as practically possible taking into consideration - Malta's competitivity, efficiency and cost efffectiveness in the public sector, control of abuse of public funds.
Measures increasing purchasing power is imperative for the economy to grow at a sustainable rate ...... even if it has to be a slower rate but at least a steady rate.
R.Gauci
Jun 4th 2008, 19:30
Dear Kamal I agree with you that a lot of food in some so called advanced countries like UK is unfortunetly being trashed and I can confirm that even in Malta is happening that and not only in housewares but on a larger scale by some importers which prefare to thrash expired foodstuffs instead of lower the price of an item and sell all the lot!! They have a large profit margin so they can do it! But that is an other argument that we should discuss when the report will be how to eliminate poverty in the world! The argument is that prices of foodstuffs in Malta increased sharply during last year as proven by the Eurostat which normally SOME(which they didn't comment yet) consider its reports as a paragraph from the Bible!! There's nothing to justify all these increases in prices especially of foodstuffs but speculation and need to get more revenue from V.A.T as Mr.Agius cleverly quoted .
Again if someone wish more proves then the Eurostat report I will be more then happy to show him!
I can assure you that it won't take you a lot to see immigration on the opposite direction!
Kamal Awad
Jun 4th 2008, 17:37
@ Anna Schmidt Your question ‘what do people with a minimum wage eat’ would keep many economists mum. I would categorize this question as Million dollars question. Sorry, I should have used European currency but my converter isn’t handy right now + I don’t know what I am going to say (euro or euros) the debate is still on, and most probably would continue a bit further, so I played it safe! (smile)
Kamal Awad
Jun 4th 2008, 17:35
@ A Daley Thank you for your comment. People usually comment on any issue and hardly come back for a follow-up. A government up to every body’s expectations doe’s not exist. What we “common citizens’ do is just to reach a compromise. All politicians (without one single exception) would emphasize: we ought not, to however, ever keep citizens from knowing the truth.
The opposite is the truth indeed. hehehe (cheer-up) But do I blame politicians? Certainly not. I blame myself! Today anybody can find information about every thing but unfortunately too many are not interested to even know or read. Could it also be because the truth is unpalatable? Actually I mentioned the UK example to demonstrate sphere of human being irresponsibility. This has nothing to do with our income or wallet thickness. I believe it’s more related on our behavior-conscious
A Daley
Jun 4th 2008, 13:47
Correct kamal awad, and that is why whoever thinks that being in the Euro, prices in UK would rise faster then in Malta ,does not realise or is naive as to where and how our food is brought onto the shelves in our Island!
The fact that we do not have any control on our currency does have an effect on other things like Tourism. Call it what you want, but the fact remains, that we have no control on our currency whatsoever.
You also mention - (Yearly in UK ‘alone’ the population trash away un-touched packed meals amounting to 10 BILLIONS)
That is because in UK the disposable income is far higher then ours in Malta and therefore if we do not have some kind of injection by the Government we shall plunge into recession fast.
People seem to conveniently forget that the Government finances are in one big mess and we are now reaching the absurd situation of paying a yearly sum of about 230 million Euros to just service the National Debt. All these millions are coming from our taxes, which could otherwise stay in the economy to grow! We are shrinking.
Anna Schmidt
Jun 4th 2008, 07:19
You have to start shopping at Lidl!
Food prices in Malta are sky high compared to Germany! Nobody is controlled and everbody charges whatever they want! Just feel sorry for the people with a minimum wage - what do they eat? This country needs to adjust!
laurence schenbri
Jun 3rd 2008, 23:51
An afterthought. When some three months ago I was comparing the hike on the price of edible oil that a well known French oil in Malta shot-up by 35% and in France only by 7%, a certain Joe Vella suggested that I should change the brand, now we have a choice.
Why did he keep mum on this worrying issue that the rise in `food prices in Malta is the second highest in the €uro area`. The problem with Joe Vella is that he connects all issues to his political belief, surely he must go to the shops like everyone else being blue or red.
alfred agius
Jun 3rd 2008, 22:08
Thanks R. Gauci for confirming that we consumers in Malta have no protection from those fleecing our pockets. It will be interesting to compare the receipts you have in hand with those issued now and a year ago in Malta.
The sad truth is that the gov is more than happy with the situation in Malta. The equation is the higher the prices the higher the revinue for the gov. in terms of VAT. As an example, the price of fuel goes up and the VAT to be paid by the consumer goes up in proportion to that paid previously,
Oh yes, the gov, is so sensitive to our eroding purchasing power !
Kamal Awad
Jun 3rd 2008, 19:21
What is the matter?
Its not exactly a matter of a currency .. Euro, Dollars, Pounds, Yen or Shiko Bicko, or even adjusting some taxes.
Its not a matter of who’s is there in any government from within any color or direction (Left - Right - Upside down)
Its not a matter of a Democracy or a Junta.
Its not a matter of a confession.
IT’S A GLOBAL FOOD ISSUE: SUPPLY IS GETTING LESSER THAN DEMAND
What actually concerns me is that, peoples cannot accept (or prefer not to accept) that a crucial resource is irreplaceable. And all individuals (irrelevant of income) will be facing a tougher time to secure daily necessities. Poverty is color blind god-less and has no frontiers.
Back to basics
1- Investing in Smart-Farmers
2- Limit of OUR over consuming (Yearly in UK ‘alone’ the population trash away un-touched packed meals amounting to 10 BILLIONS)
3- We should refine our living and or life styles (the GAP is getting narrower)
We should start now and from within. I don’t wish to live and see a migration talking opposite directionSSS!!!
If it sounds superfluous please consider it trash able.
Thank you Ivan
A Daley
Jun 3rd 2008, 14:47
A few weeks ago someone contradicted me by saying that since the Euro is strong and the Sterling is weak the increase in food price increases will be lower in Malta then that in the UK!
Statistics are out and have proved me correct. There are other factors that make Malta in particular, very expensive vis-à-vis our salaries.
We shall have another blow in tourist arrivals next year because of the strength of the Euro.
After joining the Euro we have literally lost all control of our currency including control on the interest rates, which are dictated by the big boys, namely France, and Germany.
To make matters worse, we have the lowest salaries when compared to other western European countries, and going down!
The Govt. needs to boost the economy NOW by reducing taxes, especially stealth taxes to finance the biblical sum of our National Debt, or are the Government finances in such a big mess that we are going to see more increases in taxation, rather then decrease?
We are in for another self inflicted recession, because the Government had been living beyond it’s means for a very long time and has no room to manoeuvre.
R.Gauci
Jun 3rd 2008, 14:12
The real reason for increasing of prices is written in the last sentence of this report and no other excuses!! I am living in Ireland and can assure that food prices didn't change a lot from last year and if someone wants a prove I have receipts in hand to show!! Its all about a bunch
of speculators getting richer and taking advantage of the oil crisis situation! And unfortunetly the Goverment is doing nothing with the excuse of free market to at least monitor these irregularities being made! Don't forget that US dollar and English Sterling are at the lowest rate value for years! Another fact to consider is that wages are still low in Malta compared to abroad and cost of living is the same or higher!
laurence schembri
Jun 3rd 2008, 13:28
@ Caroline/Richard
Why should poor harvests and higher demand affect us than the rest of Europe. Read Ivan Camilleri again, please.
laurence schembri
Jun 3rd 2008, 13:06
I said this four weeks ago and I will repeat, food in Malta is a 1/4 to 1/3 higher than it is in Germany. What I found most amusing was that in Germany (Nuremberg) they moan that everything is so expensive.
B Agius
Jun 3rd 2008, 11:59
What has been the Government's response to this? What is the Government's policy with regard to such hikes in prices? You can't keep blaming the international situation if indeed Malta is the second highest in Europe.
Richard / Caroline
Jun 3rd 2008, 10:50
"The price of food is going up across the globe due to higher demand and poor harvests,"
What Mr. Camilleri fails to mention is that "poor harvests" is only a small part of the story. In reality a large percentage of crops are being harvested for other uses, such as fuel production. This has already caused hunger in large parts of the third world and is now affecting us.
Our food getting more expensive brings closer to home the real need there is to reduce our energy consumption and/or use "real" renewable energy sources (i.e. solar and wind!) and not blame it on the weather.
Mark Spiteri
Jun 3rd 2008, 10:03
And the show goes on and on.
9.7 % rise with the so called FAIR TRADE motto still in action.