Labour pushing for answers over inflation

Opposition Leader Charles Mangion said yesterday that the government has still to explain why inflation has been rising steadily since the general election of March 8.

Inflation on the island averaged 4.3 per cent for the first seven months of this year, when the EU average was 3.9 per cent and that of the eurozone 3.6 per cent.

Replying to a counter-statement issued on Tuesday by the Finance Ministry, Dr Mangion noted that ,while the ministry had said that four EU countries had double digit inflation, it did not explain that, in those countries, wage inflation was also in double digits. In contrast, Malta had the lowest wage inflation in Europe but prices were continuing to spiral.

Thus, while purchasing power was increasing in other EU countries, it decreased in Malta.

It was wrong for the ministry to claim, Dr Mangion said, that inflation was the result of spiralling international energy and food prices.

Even if those variables were taken into account, inflation in Malta was 3.1 per cent in the first seven months of the year compared to 1.9 per cent in the EU and 1.7 per cent in the eurozone, he said.