The Nationalist Party has expressed concern at new figures showing that Malta’s cost of living in July stood at 2.5%, higher than the average for both the European Union and the eurozone.
“This is the harsh daily reality for thousands of Maltese and Gozitan families. Ever-increasing costs, wages that fail to keep up, and a Government that turns a deaf ear to people’s concerns,” PN Shadow Minister for the Maritime Sector, Social Dialogue, and the Fight Against the Rising Cost of Living Ivan Castillo said on Wednesday.
Figures published by the National Statistics Office (NSO) confirmed that inflation, measured by the Harmonised Index of Consumer Prices, remained unchanged from the previous month. Compared to July 2024, the cost of living had gone up.
It was also highlighted that Eurostat data showed that in July the EU average stood at 2.4%, while the eurozone average was 2.0%.
The PN said that while countries such as France, Germany, Cyprus and Italy have taken action against inflation, Maltese families and businesses remain burdened without support.
It added that in other European states facing similar challenges, the cost of living has started to decline, while in Malta, the prices of basic goods continue to climb.
The sharpest increases were recorded in food and non-alcoholic drinks, mainly due to a rise in meat prices, as well as in restaurants and hotels.
The PN warned that this not only harms households but also places added strain on economic sectors whose costs keep rising while profits fall.
Castillo said the Labour Government has ignored proposals made by the Opposition and even voted against its parliamentary motion to address the crisis.
Among the PN’s proposals are: removing tax on the Cost of Living Allowance (COLA) so workers keep the full increase, exempting the first €10,000 of overtime and part-time earnings from tax, and introducing tax credits for employers so COLA does not push up prices further.
The PN also proposed setting up a national fund to support industries linked to imports and exports by reducing transport and acquisition costs.
It added that Malta needs a new and sustainable economic model, built on higher value-added sectors that create quality jobs, better wages, and stronger productivity.
“The Nationalist Party will continue to speak on behalf of those who cannot keep up with the rising cost of living and on behalf of businesses that urgently need support,” Castillo said. He affirmed that the PN is ready to lead Malta in a new direction, one that offers serious solutions and delivers a better quality of life.