Inflation’s hard bite: 121,000 struggling to make ends meet

Inflation is leaving its toll with 121,000 people not making it to the end of the month or struggling to do so, a MaltaToday survey shows. 

The survey found that 13%, or 58,000 people, are not making it till the end of the month and a further 14%, or 63,000 people, are struggling to make ends meet. 

A further 139,000 people (31%) said they are managing to live comfortably and making ends meet but unable to save any money. 

But the survey also found that 37%, or 166,000 people, have enough money left at the end of the month to save for holidays and emergencies. It is only 4%, or 18,000 people, who are riding the wave and having enough disposable income to save for the future and be able to invest. 

The population figures in each instance represent people aged 16 and over, which means the actual numbers are higher. Population figures for those aged 16 and over were sourced from the Census 2021. 

Respondents were asked about the state of their finances at the end of the month and were given five options ranging from having enough money to invest their savings to not having enough money to make ends meet. 

The picture emerging from the survey is that while one in four are experiencing financial hardships and are either left with a shortfall (13%) or are struggling to make ends meet (14%), just over three in ten (31%) live sufficiently well but have no money left to save. 

The remaining four in ten live a good life and have enough money either to save for holidays and emergencies (37%) or to invest their savings (4%). 

Young most likely to save 

The survey also shows that younger respondents aged between 16 and 35 are the most likely to have enough disposable income at the end of the month to save for holidays and emergencies (48%) while older respondents are more likely not to make ends meet. 

While only 7% of 35- to 50-year-olds and 9% of under 35-year-olds do not make ends meet at the end of the month, the percentage of respondents in the same predicament rises to 18% among 51 to 65 years old and to 16% among over 65-year-olds.  Both age groups also include a higher percentage of those who struggle to make ends meet; 20% among 51- to 65-year-olds and 17% among over 65-year-olds. 

Surprisingly over 65-year-olds are more likely to have more money to save for holidays and emergencies (37%) than 51- to 65-year-olds (28%).   

In fact, the survey suggests that those aged between 51 and 65 are the hardest pressed, possibly because they are likelier to still have dependents living at home than older people, or to be experiencing marital separations which leave a toll on household incomes.  

The survey also shows that men are more likely to invest their savings than women or to save money for holidays and emergencies. 

Fifth in Southern Harbour do not make ends meet 

The survey shows that the percentage of those who do not make ends meet is highest in the Southern Harbour region, where nearly one in five (19%) ends with a shortfall in finances at the end of the month. 

This region includes the Cottonera area and comprises electoral districts that form the Labour Party’s heartland. 

In contrast the highest percentage of people who at the end the month have enough money to save for a holiday and for emergencies is highest in the more affluent Western region (47%), which includes Ħaż-Żebbuġ and Attard.  

The survey shows that 44% of people who live in the Northern region, which includes Mosta, Naxxar and St Paul’s Bay, are left with enough money to save for a holiday and emergencies.    

Gozitans are the most likely to invest and save money for the future (22%) in contrast to inhabitants in the South-Eastern region where none of the respondents do so.   

But in an indication of greater frugality, 33% of Gozitans compared to 37% of all Maltese say they have enough money to save for emergencies and holidays. 

Overall, the highest percentage of respondents who live comfortably but have no money to save for holidays and emergencies is found in the South-Eastern region (39%) and the Northern Harbour (34%). 

As expected, respondents with a tertiary education who are more likely to have better paid jobs are the most likely to save and invest in their future (5%) or to save for holidays and emergencies (44%).   

PL voters feeling the pinch less than other voters 

The survey also suggests that Labour voters are left with more money at the end of the month than both PN voters and non-voters. 

This raises the question on whether political allegiance impacts the way people perceive their financial situation, especially when one considers that the PN has traditionally included a larger cohort of middle-class voters and Labour a larger cohort of working-class voters. 

While only 7% of present PL voters said they do not make ends meet at the end of the month, the percentage of people in this situation rises to 19% among PN voters and 14% among non-voters. 

In contrast while 55% of PL voters have enough money left to save for holidays and emergencies, this percentage dropped to 24% among PN voters and 27% among non-voters. 

Substantially less money than last year 

Respondents were also asked on how their present financial situation at the end of the month compares to last year. 

The survey shows that around 70% said they are worse off than last year. 

But while 27% said they are left with slightly less money than last year, 43% said they are left with substantially less money than last year. 

Less than 3% are left with more money than last year while 27% said they are left with the same amount of money as last year. 

The survey shows that non-voters and PN voters were more likely to say that they have substantially less money left than last year. While only 19% of PL voters said they have substantially less money left than last year, the percentage increased to 57% among PN voters and to 57% among non-voters. 

Younger people aged between 16 to 35 were the most likely to report an improvement on their personal financial situation (7%) compared to less than 1% among 51- to 65-year-olds.  But this age group was also the most likely to report a decrease in their disposable income over the past year (49%). 

Over 65-year-olds were the most likely to say that their personal situation has remained the same as last year (36%), while 36- to 50-year-olds were the most likely to report a slight decrease in income (34%). 

Less disposable income for women 

Women were also substantially more likely to report a decrease in disposable income when compared to last year. While 52% of women said that they have substantially less money at the end of the month than last year, only 36% of men reported being in the same situation. 

On a regional level the Gozitans were the most likely to report having more money at the end of the month (7%) while respondents in the Northern Harbour (49%) and the Southern Harbour (46%) were the most likely to report a substantial decrease in disposable income. 

Food prices most impacted by inflation 

Foodstuffs bought from grocer shops and supermarkets have experienced the greatest increase in prices, according to 45% of respondents in a MaltaToday survey. 

The findings confirm the figures published by the National Statistics Office that shows food prices as being the most significant factor in pushing inflation up. 

The survey found that 12% of respondents indicated other products bought from grocer shops and supermarkets as having registered higher prices. 

This was followed by 11%, who indicated the price of food and drinks from restaurants and catering establishments, and 10% who reported higher prices for health services. 

But in a clear sign that the Maltese have been sheltered from the hike in international energy prices, only 1% referred to an increase in their utility bills. 

Respondents aged under 50 years of age (15%), respondents with a tertiary education (14%) respondents from Gozo (19%) and non-voters (18%) were the most likely to report an increase in restaurant prices. 

In contrast only 3% of 65 year referred to the increase in restaurant price. But older respondents were the most likely to report an increase in the price of health services (19%).   

16- to 35-year-olds were also the most likely to report an increase in housing costs (9%) in contrast to just 1% of over 65-year-olds.