Cost of living in Malta remains higher than EU and eurozone average, PN says; PL replies

The PN has expressed deep concern at the latest figures published on Wednesday by the National Statistics Office (NSO), which show that Malta’s cost of living in July stood at 2.5% – higher than the average for both the European Union and the eurozone.

The annual rate of inflation, measured by the Harmonised Index of Consumer Prices, remained unchanged from the previous month, with no reduction even when compared to the same period a year earlier. In fact, compared to July 2024, the cost of living increased, the PN noted.

Eurostat figures confirm that in the same month, the EU average stood at 2.4%, while the eurozone average was 2.0%, the party said.

“While other European countries such as France, Germany, Cyprus and Italy are benefitting from concrete measures against inflation, Maltese families and businesses are left carrying the burden with a government that remains paralysed in the face of this crisis and the everyday realities of the Maltese and Gozitan people,” the party said.

It said that countries facing challenges similar to ours are witnessing a decline in cost of living, yet in Malta the prices of essential goods remain among the fastest rising, leaving families struggling to cope. The data confirms that once again, the sharpest increases were registered in food and non-alcoholic beverages – particularly due to the rise in meat prices – as well as in the restaurant and hotel sector.

“This is not only harming families but also hitting economic sectors whose operating costs continue to rise while their profit margins shrink.”

“Beyond the statistics, 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.”

The PN said that by contrast – even from Opposition – it is putting forward “concrete proposals” to tackle this crisis. These are measures backed by social partners, yet the Government has dismissed them, just as it voted against the Opposition’s parliamentary Motion to address the cost of living, the party said.

The PN’s solutions include the removal of tax on the Cost of Living Allowance (COLA), ensuring workers benefit fully from the increase, a tax exemption on the first €10,000 of overtime and part-time earnings, so that those who work more, keep more, tax credits for employers, so that COLA does not force up prices further, a national fund to support import- and export-oriented industries, reducing acquisition and transport costs, and a new and sustainable economic model, focused on higher value-added sectors that generate quality jobs, higher wages, and greater productivity.

The PN said that 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. “While the Labour Government remains indifferent, the PN is ready to lead Malta in a new direction – one that offers serious solutions and delivers a better quality of life for the Maltese and Gozitan people.”

The statement was signed by PN MP Ivan Castillo, who is the party’s Shadow Minister for the Maritime Sector, Social Dialogue, and the Fight Against the Rising Cost of Living.

PL: ‘Opposition that remains a champion of austerity cannot understand the politics of investing in people’

In a statement in reaction, the PL said that the Labour Government continues to protect Maltese and Gozitan families, and that the Nationalist Opposition has asked them to make sacrifices and to get accustomed to high electricity bills when it was in Government.

“This is the same Opposition whose two candidates for Leadership now confirm that nothing will change in the politics adopted by GonziPN. Both have stated that the Government should stop the aid it is providing on energy and fuel to maintain stable the energy bills. The Labour Government’s policy resulted Malta registering the cheapest fuel prices in the Euro Area and among the cheapest energy bills in Europe,” the PL said.

The PL said that with the Labour Government, the people know where they stand, because while it managed to moderate inflation and remain sensitive to the realities, it introduced several measures to boost household income including the biggest tax-cut in history, the tenth increase for pensioners and a further sharp increase in the Children’s Allowance for more than 60,000 children.

“When PN was in Government it has frozen the pensions and promised a lesser tax cut rate than the Labour Government, but has never introduced it.  The PN has continued to recycle a proposal related to COLA whereby a person saves only €60, while the Government led by Prime Minister Robert Abela today gives you up to ten times more only through the tax-cut measure,” the PL said.

“A Labour Government is focused on announce another strong Budget through which it continues to invest in families and businesses to further create wealth and distribute it wisely to all. On the other hand, there’s a leaderless Opposition and a champion of austerity,” it concluded.