When, last October, workers were told that they would be receiving a €12.81 increase per week in their salary, many were pleased that the compensation they are to get for the high inflation experienced all throughout 2023 was hefty.

After all, the €12.81 weekly Cost of Living Adjustment (COLA) is the highest they ever got, and by far supersedes the €9.90 extra they started to pocket as from last January to make up for the rise in the cost of living during 2022.

But shrewder people immediately realised that the €12.81 weekly rise was not all glitter, as it would have inevitably led to a further spike in prices, as companies and businesses try to recover their added expenses by passing them on to the consumer.

After the presentation of the budget for 2024 was presented, one could immediately feel that prices had already started to be adjusted upwards – and this long before the first pay with the salary rise was handed out. Let us the remember that the budget was presented on 30 October, but workers will only benefit from the rise in late January, a full three months after the COLA was announced.

Consumers’ frustrations grew further these past few days when it was announced that the price of milk will go up too. Malta Dairy Products informed its customers that, as from tomorrow, the price of milk will go up, and quite heftily too, as a 15c increase cannot be considered as being “small”.

This is the second time that the price of milk is to be increased this year. Last June, MDP took the same decision, explaining that it must take into account the “recent worldwide occurrences” which “brought about disruptions and challenges to the industry which cannot go unnoticed any longer. The constant and persistent increases in production and operational costs have meant that MDP can no longer absorb these costs internally”.

Apparently, the increase in price at the time has not been enough, forcing MDP to again reconsider its position and announcing further, higher increases as from 22 December. This time, the company said that “despite implementing various cost-saving measures, such as streamlining operations and optimising production processes, the significant increase in input costs has not been fully offset. The sustained rise in production and operational costs has reached an unsustainable point for the company’s operations. After careful consideration, Malta Dairy Products finds it imperative to adjust prices accordingly to ensure the Company's sustainability while securing a favourable future for local farmers and its workers.”

It must be noted that MaltaToday quoted government sources as saying that “The price hike is not justified in light of the subsidies and government has told milk producers it is unfair for people to pay for their inefficiencies.” If the increase is justified, then perhaps the government might need to do more to support essential goods, if it is not justified, then that is a whole other matter.

Cost of living increases have forced many families to make adjustments to their lifestyle. Many are selecting cheaper brands or doing without certain products, but such choices cannot be made when the product in question is something like milk, which is considered to be a necessity.

The rise in the price of milk means that families will see the COLA already start to be eaten up long before they will get their first salary with the extra €12.81

And so the vicious circle continues to go round and round.