Lower utility tariffs and fuel prices last month pushed the cost of living to a 30-year low, according to official figures published yesterday.

In March, the retail price index stood at 0.59 per cent, down from 1.1 per cent the year before. The 12-month moving average was 0.24 per cent. The main contributors to the drop were water, electricity and fuel rates (-0.66 percentage points) and the transport and communication index, which was down by 0.26 percentage points.

On the other hand, there was an increase in the price of vegetables, garments and tuition fees.

The government welcomed the figures, noting in particular that inflation last month had been at its lowest level since 1985.

Inflation last month was at its lowest level since 1985

In contrast it added that, under the Nationalist administration, the 12-month moving average was 10 times higher, at 2.6 per cent. It noted that, under Labour, the rate of increase of food prices was five times lower and medicine prices were rising at half the rate registered under the PN government.

At the same time, fuel and utility prices were down by 15 per cent, whereas under the PN administration there was a 70 per cent increase.

The government said the overall effect of low inflation and the 58c cost of living allowance last year left workers with an additional annual income of €260. In contrast, under the PN government the net increase amounted to just €80 a year. That explained why, in a recent Eurobarometer survey, the number of respondents who expressed concern on the rising cost of living in Malta dropped by half, the government said.