Social partners are predicting that the cost-of-living-adjustment for next year will not pass €1.75 per week, due to a low inflation rate, the Times of Malta has learnt.

The figure, equivalent to €91 for the entire year, is the same as last year’s payment and makes up for price increases over the past year.

It is the result of a specific formula worked out by the Retail Price Index mechanism, which measures the price fluctuations of a number of products and services throughout the year.

This figure is not the final one, which will be announced in next week’s Budget speech, because the RPI for September still needs to be factored in and it has not yet been published by the National Statistics Office.

This is equivalent to €91 for the year

However, sources said it is not expected to change the predictions, since the Retail Price Index throughout the year has been, more or less, stable.

In August, the monthly inflation rate stood at 0.18 per cent, up from -0.34 per cent the month before.

The main upward impacts on annual inflation were recorded in the Food Index, the Beverages and Tobacco Index and the Household Equipment and House Maintenance Cost Index. This was mainly due to higher prices of fruit, cigarettes and furniture.

The price of transport and communication, clothing and water, electricity, gas and fuels were the main downward impacts on the annual inflation rate. This was mainly due to a reduction in the prices of fuel, garments and gas.

The 12-month moving average rate was 0.79 per cent in August.

In June, Malta had the third highest level of inflation in the EU, according to Eurostat.

The highest annual rates were recorded in Belgium (1.8 per cent), Sweden (1.2 per cent) and Malta (one per cent).

Civil society lobbyists have called on the government to revise the way the COLA is granted, asking for an increase in the minimum wage and the minimum pension, as well as measures to protect low-income earners.

 

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