I write this as a common person with a basic understanding of accounts in relation to inflation.

I have been living on these islands for almost a year. Prices have increased at a steady rate ever since our arrival. Watching TV advertising from the UK, things there seem to have come down in price - especially in the food retail business. I believe this is true in other European places too.

Now my observations are these.

1. The Maltese lira is a dead currency. It died when the euro was introduced.

2. It is no longer necessary for there to be two prices displayed on shelves/on items in the shops.

3. Stock is being purchased nowadays in the euro, and should be sold as such too, with profit margins remaining the same. This will mean that some items will cost less and be sold on for less. However the profit for the trader should remain the same.

Why do traders/business people think that they can quote me a price to purchase an item in Maltese lira? Does this mean they will give me items for free? I am not able to pay for things in the dead currency.

The euro cannot now have a rate that is equal to the lira. It was equal to €2.33 when the euro became the currency.

Can anyone explain why Malta thinks it is exempt from the recession that the rest of the world is suffering from?

What happened is that tourists are paying double the price they were paying for things two years ago because the currency changed.