“The government needs to take action and cannot close its eyes anymore to the effects of inflation in Malta. It is clear that the increase of prices in Malta is much higher than in the EU, regarding essential sectors such as food and medicines,” said opposition leader Alfred Sant yesterday, at a conference held outside the Consumer and Competitiveness Division, in Cannon Road, Sta Venera.

“Between October 2006 and October 2007, while the price of food within the EU rose by 3.8 per cent, in Malta it has risen by 6.6 per cent; as for clothes, prices increased by 1.1 per cent in the EU, and 7.8 per cent in Malta; and with regard to medicines there was an increase of 1.4 per cent within the EU, while in Malta the increase was of 2.5 per cent,” said Dr Sant.

“It is clear that the structures the government is using to monitor fair trade are not sufficient,” he added. “Why are the structures available not ensuring that current prices reflect market prices?” he asked.

The Labour Party was urging all those taking part in the meeting of the Malta Council for Economic and Social Development (MCESD) next week to ensure that the country’s structures, funded by the budget, were given the means to investigate any changes in prices and to take the necessary action.

“We are pleased to note that the government has taken up the MLP’s proposal to hold an MCESD extraordinary meeting purposely to discuss the problem of the cost of living,” said Dr Sant.

He said he was not talking about controlling prices – “what I am saying is that the prices need to reflect the competitive forces of the market,” he said.

The MLP believed that a movement was needed which would have the resources to monitor prices and submit a report every six months on the changes in prices occurring in the market, so that any changes in price which did not reflect market forces would be identified.

“In fact,” he said, “the UK’s Office of Fair Trading issues a report which announces decisions taken with regard to supermarkets as well as those who provide milk products whose prices do not reflect the market’s rules. We do not have this kind of document available, and one needs to be created, using the UK’s version as a model.”

In a statement following the press conference, the Nationalist Party said Alfred Sant always manages to raise the cost of living, because he takes the wrong decisions. He had promised to bring down inflation but when elected had taken measures and introduced 33 taxes that had raised the cost of living.

As Opposition Leader, the PN added, he had published a bill for a list of food and household items. After he became Prime Minister the bill came to cost 19 per cent more, and that was not due to higher international prices. And although oil prices were at $12 a barrel, Dr Sant had raised the electricity and water bills.

What Dr Sant was promising today had been promised before 1996, the PN said. He was not credible when promising to curb inflation.