The Labour Party has urged the government to put the growing problem of inflation at the top of its agenda. The MLP said in a statement that the government should stop turning a blind eye to the record inflation levels which had now been confirmed by official statistics.

With a rate of 0.7 per cent rate over the eurozone average, Malta has the fourth highest cost of living among the eurozone states, the party said.

Prices were rising fastest for the most important items including food, which saw a nine per cent increase over the past year, while the price of clothing and education was up by six per cent.

Although international price rises were reflected in domestic prices, inflation could not be wholly attributed to such external factors, the MLP argued.

In March, food prices in Malta rose by one-and-a-half times the EU average, while the price of clothes and medicines practically rose six-fold.

Such increases contradicted the government's arguments that there should not be any shift in prices after the euro introduction prize freeze agreement came to an end last month.

The government was an accomplice to causing inflation, after increasing the price of diesel, Labour claimed, since this move prompted the introduction of a new six per cent tariff by stevedores.

"The government needs to understand that the election was held over a month ago, and it's time to roll up its sleeves and do something," the MLP said.