Labour spokesman for Economic Development Charles Mangion said on Friday that statistics just published by Eurostat shows that GonziPN has lost all control on inflation that is hurting very badly families and businesses. Families continue to lose their purchasing power while businesses lose their competitiveness.
At 4.2% Malta has the highest inflation in the euro zone in July which has an average rate of 2.4%.
Mangion said this shows that GonziPN and the regulators it has set up to protect consumers are failing dismally.
Inflation at 4.2% without economic growth is disorienting the economy of the country as usually when a country does not have economic growth, inflation goes down.
Mangion said that families and businesses, already crushed under the water and electricity bills have to pay higher prices since July 2011 for vital and essential products and services like food and drinks, healthcare, transport, education, hotels and restaurants.
Maltese employees have to pay for prices higher than in the euro zone with wages that are lower than in the euro zone. In the euro zone the average wage per hour is €27.6 while in Malta it is €11.9 per hour.
Mangion said that: “Government, through the utility bills, fuel prices, MEPA fees and other administrative costs, is contributing to inflation by imposing costs that make it double that of our competitors.”
Mangion said that the political instability is hurting the country as government is riven with internal problems and cannot focus on improving the quality of life of families and on investing in the country to make it overcome its economic difficulties.