Inflation rate eating into people's salaries - AD

Alternattiva Demokratika, the Green Party has expressed its preoccupation that the 5.6 per cent annual change in inflation rate is the highest in 10 years and that the increase between June and July is the highest in the eurozone. This actually means that the spending power of Maltese salaries is being continuously eroded, with certain categories of workers not making it till the end of the month on their salaries, AD chairman Arnold Cassola said.

Michael Briguglio, spokesperson for Social and Economic Development said that while certain sources of inflation are imported, the government can take action against other sources.

"To begin with, AD believes the government should seriously consider realistic compensation for cost-of-living increases, an increase in the minimum wage and in tax credits", Mr Briguglio said.

AD is proposing the strengthening of the fair trading office so that it can take action against cartels and abusive practices. The government should also encourage increased production of commodities such as agricultural products and for consumers to find ways to avoid artificial price increases by middlemen.

Mr Briguglio appealed to the government to revise the energy surcharge so as to penalise wasteful practices.