Malta last year had the highest prices in Europe for household appliances and other electronic goods, such as TV sets and DVD players, according to a new study published by Eurostat yesterday.
The report, based on price surveys covering more than 2,400 consumer goods and services across the 28 member states, shows that while a TV was last year selling at €100 in the EU, the same set in Malta cost €140.
The same applied for many other goods, such as refrigerators and freezers, washing machines, cookers, cameras, computers and software.
Although the study did not delve into the reasons why these goods in Malta are being sold at such high prices, it said that most probably the hike was related to the geographical position of Malta on the periphery of Europe, which means higher transport costs.
Most probably the hike was related to the geographical position of Malta
However, this explanation does not appear to be reflected in the prices of other imported goods even though in some other cases, consumer prices are still higher than the EU average. For example, food and non-alcoholic beverages – by far the largest item of household expenditure – are still expensive compared to many other more affluent EU member states.
While Malta’s GDP is 20 per cent lower than the EU average, food items still cost the same as the EU average. Compared to the majority of member states, including the Netherlands, Spain, Greece and Portugal, food items in Malta are dearer.
It is estimated that 20 per cent of a household budget is spent on food. The study shows that in some other retail areas, prices are relatively cheaper than the EU average. This applies particularly in the case of clothing, restaurant prices and transport services. Meanwhile, the price of footwear and home furnishings, such as carpets and furniture, is higher than those found in other EU member states.
Interestingly, despite the perception that the price of electricity and gas services in Malta are high, especially before the recent introduction of lower tariffs, the survey shows Malta had cheaper prices than the rest of the EU.
Price levels for consumer goods and services differed widely across Europe, with Denmark consumer prices ranking at the highest (40 per cent more than average) while prices were cheapest in Bulgaria.
The study shows that while northern European countries consistently had the highest prices, south-eastern European countries had the lowest.