In light of the most recent statistics confirming that the cost of essential goods continues to rise, the Nationalist Party said Wednesday it is standing with families and putting forward concrete solutions to address this crisis.

Despite this, the Labour government continues to ignore the Opposition's proposals, remaining detached from the realities faced by workers, young people, the self-employed, the elderly, and pensioners. It has lost touch with families who are being increasingly burdened with costs they can no longer bear, the PN said.

During a press conference this morning, Shadow Minister for the Fight Against the Rising Cost of Living Ivan Castillo, Shadow Minister for the Economy and Enterprise Jerome Caruana Cilia, and PN candidate David Pace Ross recalled how in recent days, two separate studies confirmed that the cost of living continues to climb.

The first was the Harmonised Index of Consumer Prices, which showed a monthly increase from 2.1% in March to 2.6% in April. Four days later, the National Statistics Office published the Retail Price Index, which revealed a rise from 2.1% to 2.4% over the same period.

These facts show that the cost of living is not solely driven by external factors but also results from poor planning and misguided priorities by Robert Abela and his Labour Government.

The PN speakers explained how the Government's own data confirms that the steepest impact is being felt by low-income earners, pensioners, single parents, and those living on minimum wages.

More concerningly, the highest price increases were recorded in the food index, which jumped by almost a full percentage point in just one month, with the prices of essentials such as milk, bread, vegetables, and medicines rising at an alarming rate. There were also significant increases in the transport and education indices.

The Government's COLA (cost-of-living adjustment) increase - on which it still charges tax - quickly evaporates in the face of rising prices.

Compounding this issue are other factors such as unplanned population growth and the influx of low-skilled foreign labour.

The Partit Nazzjonalista also draws attention to alarming social and economic trends outlined in reports such as those by Caritas Malta. Their latest study shows steep increases in the cost of basic living items when comparing 2024 to 2020:

• A family with two adults and two children: an increase of €5,207
• A single parent with two children: an increase of €5,974

In contrast, the average salary for elementary work during the same period only increased by €3,003 - significantly less than the rise in basic living costs for a family seeking a decent standard of living.

In the face of all these challenges, the Partit Nazzjonalista has put forward a clear and realistic vision, including immediate and long-term solutions. Yet the Government has dismissed these proposals and even voted against an Opposition motion in Parliament aimed at tackling the cost of living crisis in a meaningful way.

The PN is proposing a serious and realistic plan to relieve pressure on consumers and support business owners:

1. Increase families' disposable income:

• Remove tax on the Cost-of-Living (COLA) increase
• Tax exemption on the first €10,000 earned from part-time and overtime work

2. Support for businesses:

• Tax credits on additional operating expenses
• A dedicated fund for import and export logistics to reduce related costs

3. Long-term productivity vision:

• Investment in technology and digitisation to achieve more with lower costs
• Reducing reliance on low-skilled foreign labour
• A national skilling and reskilling programme to prepare workers for the modern economy and create better jobs with higher wages
• Investment in new high-value economic sectors

The Pn said firmly believes that people need a socio-economic vision that generates real wealth. We must improve productivity levels in Malta. People want a better quality of life based on tangible results. They want public funds to be used for the common good, not hoarded by the privileged few.

The Shadow Ministers concluded by saying that it is not enough for the economy to grow on paper if this growth is not reflected in the pockets of families struggling to make ends meet.

People are not statistics. And data means nothing unless it translates into a better standard of living for our families, the speakers said.

The PN's 'concrete solutions' mean only one thing: austerity

In reaction, the Labour Party said that the Nationalist Party's "concrete solutions" to the cost of living "are nothing more than to adopt a market driven approach. They said so on the price of energy, when they stated that when the international price of oil rises abroad, it will rise in Malta too, and they even wanted the liberalisation of the energy market which would have the effect of an increase in electricity bills."

When the Labour Government introduced the 'Stabilità' (Stability) scheme, the PN attacked this initiative, describing it as 'dangerous', the PL said. "These are the same people who had described the rising cost of living under a PN government as a 'perception'. They cannot be trusted."

"The Labour government has introduced several schemes, including the exemption from stamp duty on the purchase of property by first-time buyers. The PN has now announced the same measure, despite it having been in force for years. Today, the people enjoy the greatest social investment that translates into substantial pension increases to the extent that, for the last 10 years, a pensioner has seen a pension increase of €70 per week. Moreover, families are enjoying another sharp increase of €250 per year in the Children's Allowance and the biggest tax cut in history."

"The Government remains sensitive, and committed, to the realities of the people and continues to support them through the economic wealth that is being created which continues to sustain families as it has always done and as it shall continue to do."