The main message that emerges from the National Statistics Office report on the retail price index for December is that while inflation dropped by 0.1 per cent to 2.6 per cent, the elements that mostly affect Maltese families have registered an increase, Malta Labour Party deputy leader Charles Mangion said.

The furniture, domestic products and home maintenance index showed an increase of 1.6 per cent over December a year earlier. The increase in the price of water, gas and other fuels rose by 4.1 per cent in the same period, Dr Mangion pointed out in a statement.

Another increase, of 2.7 per cent, was registered in the education sector, while the health index also rose by 3.1 per cent.

The food and drinks index dropped by 1.2 per cent when one compares December to November, but if one were to compare December 2006 with December 2005 then the index increased by 3.3 per cent, Dr Mangion said.

He said that the drop registered in the hotels and restaurants sector was only a result of seasonal adjustments to prices. All this shows that the Maltese people are still being hit badly by price increases, Dr Mangion said.