Inflation up steeply in October
The Harmonised Index of Consumer Prices jumped to 112.05 points in October from 110.98 in September, the NSO said this morning.
It also reported the annual rate of inflation rising to 5.8 percent last month from 4.9 percent in September and just 1.6 percent in October last year. The annual rate had also been 5.4 percent and 5.6 percent in August and July respectively.
The twelve-month moving average rate of inflation stood at 4.4 percent,up from 4 percent in September and 0.3 percent in October last year.
The NSO said the Harmonised Index of Consumer Prices increased by 1 percent over the previous month owing to an increase of 8.9 percent in the Clothing and Footwear Index, mainly due to the introduction of new stocks in the market.
The Housing, Water, Electricity, Gas and Other Fuels Index went up by 5.8 percent, mainly on account of water and electricity tariffs.
An increase of 5.3 percent was registered in the Education Index, due to higher school and private tuition fees. Seasonal increases in the prices of fruit and vegetables caused the Food and Nonalcoholic Beverages Index to rise by 3.5 percent.
The Recreation and Culture Index went up by 0.6 percent, due to higher prices of newspapers and periodicals. Higher prices of products used for personal care and of certain types of financial services contributed to a 0.5 per cent increase in the Miscellaneous Goods and Services Index.
The Transport Index shifted up by 0.2 percent, mainly on account of higher prices of motor cars and road transport. A similar increase was recorded in the Furniture, Household Equipment and Routine Maintenance of the House Index, mainly brought about by costlier household textiles and higher fees for repairs of household appliances. The Alcoholic Beverages and Tobacco Index moved marginally upward on account of an increase in the price of wine.
The Restaurants and Hotels Index registered a drop of 3.8 percent, seasonal price reductions in accommodation services being the main contributory factor. In October, the twelve-month moving average rate of inflation stood at 4.4 percent, whereas the annual rate of inflation stood at 5.8 percent
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Alfreed Micallef
Nov 14th 2008, 21:04
Once again the wise words of Alfred Sant when he made public his concern about the ill-timing of Malla's entry into the euro zone have come back to haunt us with a vengeance. We're now all reaping the fruit of Gonzi's fervour to rush the introduction of the Euro. Cost of living has never been higher, demands for higher wages will soon become the order of the day and Malta's economy will continue to slowly sink into the government-induced chasm.
Lawrence Martinelli
Nov 14th 2008, 20:05
Unfortunately when in Malta I was often asked about the Euro.
As I often travel troughout Continental Europe from the UK ,
I said.....keep out of it....since the introduction of the Euro nearly
everything has almost doubled up in price in Euroland.
Besides.....Central Bank of Malta could not decide what was best for Malta.
The joining E.U. was all right...., within limits, more chance for trade.
But handing Malta's affairs to the E.C.B. in Frankfurt......why on earth ?
Albert Spiteri & others are right.......people are gullible.
S. Agius
Nov 14th 2008, 15:18
If you realize that the weighting of Fuel, light and Power is just 2.25% when computing monthly inflation, then you can understand that in reality inflation is much higher than that if the Fuel, light and Power % is adjusted according to today's reality. I believe Alfred Mifsud wrote a number of times regarding this issue.
Albert Spiteri
Nov 14th 2008, 13:57
Considering the arrogance in government and the empty pre-electoral GonziNP slapstick, an HICP inflation rate (1.7%) for September only, is staggering. It should force the good people of these lovely islands to stand up on its haunches.
We are living an annual inflation rate of 4.9% going up to 5.8%, at a time of recession, shrinking competitivity and exports, and an alarming drop-rate in fulltime employment. This is also a time when taxes tend to go up geometrically. And the worst is yet to come. The global economic tsunami has yet to hit us at full starboard.
This should clearly indicate to one and all the direction this incompetent government ought to take, now before it gets too late, that is OUT, RESIGN, MOVE OFF.
Addiction to power, trickery, embezzlement and gerrymandering pulled the NP out of a landslide electoral defeat. Their incompetence and lack of integrity and moral fibre, have pushed this gullible and miserably alienated people into the last phase of a 20-year-old raucous fiesta of squandering and debauchery. Now the stage is set for the last and final act of our collective ruin and bankruptcy.
J. Abela
Nov 14th 2008, 13:55
For how long us consumers will be able to fork out money whilst salaries remain the same....?!!! We've been seeing inflation raising drastically month after month.
Our standard of living is on the decrease....
John Caruana
Nov 14th 2008, 12:57
This level of inflation means that if you keep your money at your bank, you will be making a loss in real terms as interests fell down due to ECB's reduction in the base rate. This was a risk we took when we joined the EU as the Central Bank of Malta cannot use monetary policy to fight againt inflation but rather rely on the ECB to decide a monetary policy for all member states.
If most member states are in terrible financial situation, the ECB will try to stimulate the economy by lowering the base rate with the expense of high inflation. Malta on the other hand is not in a 'financial crises' but unfortunetely we still have to suffer this 'expense'.
John Caruana
David Zarb
Nov 14th 2008, 12:35
Well done GonziPN. "Finanzi fis-sod", "Qbadna l-barri min qrunu". Dear people, do you remember when GonziPN introduced the price monitoring unit for medicines? Does that still exist? :) Nooooo, Is it time to RE-introduce it? perhaps on day-to-day products/consumables?
I would like to see the inflation statistics of the next months when the new tariffs will have an impact on every aspect of our day-to-day life.
Another feather in the cap of GonziPN. Shame!