Inflation on a par with the EU - Ministry
The average rate of inflation in Malta over the past 12 months was 3.3 percent, exactly the same as the EU, the Finance Ministry said this evening. Only one EU member state which joined the bloc with or after Malta had a lower rate – Slovakia which had 3.1%, the ministry said.
Replying to a statement by Labour finance spokesman Charles Mangion, the ministry said that like other countries, Malta was feeling the impact of higher oil and food prices. In some countries, the impact was higher, with inflation in Estonia, Lithuania, Bulgaria and Latvia in double digits.
Food price inflation in Malta was 1.1 percent higher than in the EU because Malta imported practically all its food. However the Consumer and Competition Division was keeping a watch on prices, with 12,655 visits by inspectors over the past six months.
Dr Mangion in his statement said inflation was the highest for years and one of the highest in the EU. He charged that a large portion of inflation was caused locally and not imported.
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John Stivala
Aug 26th 2008, 19:45
why's that convenient? its thru a 12-month average that you can even out the real impact of inflation.
a monthly rate is distored - eg in july you would have hotel/catering prices shooting up the average rate due to the seasonality of this sector... .
indeed even the EU - when deciding whether to admit a country in the euro or not...it takes the 12month average not a monthly-seasonal rate
happy to note that the visits are still taking place, i thought that they had been abandoned post-eu changeover, but it is impressive how much work gets done without people even knowing
Gerald Fenech
Aug 26th 2008, 19:38
Conveniently, the MOF quotes the 12 month moving average rate of 3.3 per cent instead of the monthly rate of well over 5 per cent. Anyone in their right mind notes the explosion in price increases across the board which is having a severe effect on middle class standards of living.