Surcharge causes price index to spike
The index of consumer prices shot up by 1.9 percent last month from the previous month, mostly as a consequence of the surcharge on power, the NSO said this morning.
The index increased to 110.58 from 108.55 in June.
"This primarily reflected an increase of 8.2 per cent in the Housing, Water, Electricity, Gas & Other Fuels Index, mainly brought about by the increased surcharge rate," the NSO said.
The Restaurants and Hotels Index registered an increase of 5.8 percent, due to seasonal price rises in accommodation services. The Transport Index went up by 1.7 percent, mainly on account of higher air fares, while the Food and Non-alcoholic Beverages Index went up by 0.7 percent, due to higher prices of fruit, vegetables and bread.
Higher rates charged by retirement homes caused an increase of 0.4 percent in the Miscellaneous Goods and Services Index.
Seasonal reductions in the prices of garments caused the Clothing and Footwear Index to go down by 5.7 per cent.
Lower prices of furniture and furnishings caused the Furniture, Household Equipment and Routine Maintenance Index to decrease by 0.5 percent. The Health Index went down by 0.1 per cent, mainly due to lower prices of medical products, therapeutic appliances and equipment. Lower prices of printed material caused the Recreational and Culture Index to decrease by 0.1 percent.
In July, the 12-month moving average rate of inflation stood at 3.3 percent, whereas the annual rate of inflation stood at 5.6 per cent, the highest it has been at least for the past 10 years. In July last year the annual rate of inflation was -0.2
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Edward Darmanin
Aug 14th 2008, 19:53
@ IM Dingli. I don't think that anyone in his right frame of mind can say that ‘kollox ward u zghar hawn Malta’. Far from it. We are all feeling the pinch of the increased prices, plus the many other difficult changes this country has to face, and which we have to grin and bear. But, the fact is the surcharge is not a government whim, and the international reality is as it is. And, we are not the poorest country in the world and there are billions of people earning less than us who cannot afford to buy the basic foods let alone live in air conditioned houses. So stop comparing us with the rich europeans and be grateful for what we do have. With God's help and a bit of reason and sacrifice on our part I am fully convinced that the Maltese can ride this crisis through.
Joe Buttigieg
Aug 14th 2008, 17:49
Helloooooo, the price of oil now is 113 dollars a barrell, where is the surcharge adjustment?? When the price of oil goes up, up shoots the surcharge the next day, when the price of oil goes down, eh, not even in the news. there it stays.
I. M. Dingli
Aug 14th 2008, 17:35
@ Darmanin / Gatt
So since we are part of the rest of the world, how come we do not share the same standards as the rest of the civilised world? Why don’t we have the same wage brackets? Why don’t we have decent infrastructure (roads / health services / etc) as the rest of the world? How come when the price of oil dropped (in the past days) it wasn’t reflected in the fuel prices (you might tell me that fuel prices are revised quarterly but anyway)? Why is the government silent on important matters such as illegal immigration which is constantly draining our coffers? Why did the government make promises to public transport associations / MDD workers / farmers / fishermen etc when he knew he couldn’t sustain them (proof of which are the letters issued by the PN government)? I’ll stop there for now….
I’m not implying that GonziPN does only bad things, anzi, but the way you put your arguments it seems ‘kollox ward u zghar hawn Malta’.
Edward Darmanin
Aug 14th 2008, 17:13
@ Cutajar. There may be a slow responce from PN apologists (probably they're all in Gozo trying to continue their lives normally) but some of you are sure ready to pounce on every excuse to get at the government. When will you realise that the surcharge is not a tax out of the blue but a reaction to the INTERNATIONAL OIL PRICES! Hello! We live on Earth. And together with us every country is suffering price hikes due to the (I repeat) INTERNATIONAL OIL PRICES. Therefore our inflation is not due to the surcharge but due to the INTERNATIONAL OIL PRICES.
A Daley
Aug 14th 2008, 15:59
@Michael Cutajar
How come the PN apologists did not react to this news? - unquote.
Because they are busy paying bills!
WJ Gatt
Aug 14th 2008, 15:53
@ Mr. Cutajar
Just in case you've been on Mars for the last 13 months, the price of oil has been shot up and got close to the $150/barrel mark. Just in case you've no idea either; Malta, being a member of the EU, cannot have its government pass on subsidies to corporations, so Enemalta has no option but to pass on the price to the consumers and thus we experience a surcharge. Of course this occurs despite Enemalta's hedging to secure the best price possible. In easier terms, we cannot do anything but take the price of oil as given. Maybe you should check for any oil drilling opportunities under your house.
Food price increases have also been a recent global phenomenon.
No one gets a rush of joy when prices go up; and I'm no 'PN appologist', but your comment is daft.
Michael Cutajar
Aug 14th 2008, 12:57
How come the PN apologists did not react to this news? Is it because they are lost fighting a lost battle on the shipyards saga or because they are still waiting from Pisani`s Castille or Psaila`s Stamperija, another pathetic excuse to push forward?
promises promises promises. 5 months have passed since the general election took place and yet it seems like we are in for more nasty surprises from this government.
charles.j.schembri
Aug 14th 2008, 11:40
Any comments from anyone re our COLA....I believe there was a union who asked for an increase of LM8 a week way back in the 80's, as then the cost of living went up, not as much as these ....so how about now, this union tells the government to give us what is rightfully ours.........