The government still has to explain why inflation has been rising steadily since the general election, opposition finance spokesman Charles Mangion said today.

He said inflation in Malta averaged 4.3% the first seven months of this year, when the EU average was 3.9% and that of the euro zone was 3.6%.

Replying to a statement issued yesterday evening by the Finance Ministry, Dr Mangion observed that while the ministry had said that four EU countries had double digit inflation, it did not explain that in those countries, wage inflation was also in double digits. In contrast, Malta had the lowest wage inflation in Europe but prices were still continuing to rise fast.

Thus, while purchasing power was increasing in other EU countries, it decreased in Malta.

Dr Mangion also insisted that it was wrong for the ministry to claim that inflation was the result of spiralling international energy and food prices.

Even if those elements were removed, inflation in Malta was 3.1% in the first seven months of the year compared to 1.9% in the EU and 1.7% in the eurozone, Dr Mangion said.