The cost of living increase for next year is likely to be 58c per week, reflecting a year of low inflation.

Government spokesman Carmelo Abela would not confirm the figure, but acknowledged the Retail Price Index mechanism "was pointing towards that direction".

"The rate will be final when it is announced in the Budget but this mechanism is established at law and agreed to by all social partners," Mr Abela said.

Sources said the index, which is a legal mechanism that establishes the statutory wage increase, was reflecting a year which, in some months, also saw deflation

At 58c per week, next year's increase would be the lowest in many years.

The social partners had initially predicted the increase would be €1.16 per week but September and October figures had not been factored into the formula at the time.

In a statement this afternoon, the Chamber of Commerce said that based on the formula and the practice used in previous years, the COLA increase should stand at 58c.

It called on the government to confirm this figure for 2015.

The chamber also reiterated that this figure was the result of a basic and outdated formula which should be fine-tuned to include measures for both inflation and productivity.

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