PN slams government inaction on rising cost of living

Updated at 17:11pm with Labour Party's reaction

The Nationalist Party has criticised government for what it described as a lack of action and empathy in the face of a worsening cost-of-living crisis.

Speaking during a press conference on Tuesday, shadow minister for the fight against the rising cost of living Ivan Castillo, shadow minister for the economy Jerome Caruana Cilia, and PN candidate David Pace Ross highlighted new economic indicators showing the mounting pressure on Maltese families.

Citing statistics, the PN pointed to the Harmonised Index of Consumer Prices, which rose from 2.1% in March to 2.6% in April, and the National Statistics Office’s Retail Price Index, which increased from 2.1% to 2.4% over the same period. 

These figures, they argued, confirm that inflation is being driven not only by global factors but also by what they termed “poor planning and misguided priorities” by government.

According to the PN, essentials like milk, bread, vegetables, and medicines have seen the steepest price hikes, alongside significant increases in transport and education. The party also criticised the current Cost-of-Living Adjustment (COLA) mechanism, calling it inadequate and noting that it is still subject to taxation.

The party also referenced recent findings by Caritas Malta that show basic living costs have dramatically increased over the past four years. The PN accused the government of ignoring opposition proposals and rejecting a recent motion in parliament aimed at addressing the crisis.

The opposition has laid out a series of proposals, which it claims are both realistic and urgently needed. These include removing tax on the COLA increase and exempting the first €10,000 of part-time and overtime income from tax. For businesses, the PN is advocating tax credits to offset increased costs and a dedicated fund to address import and export expenses.

PL: 'Nationalist Party solutions are just there to adopt a market-driven approach'

In a reaction, the Labour Party has claimed that the “concrete solutions” from the Nationalist Party for the cost-of-living crisis are “nothing more than to adopt a market-driven approach”,

“When oil prices rose abroad, they say they should rise in Malta too. They even called the stability scheme dangerous. These are the same people who once called the cost of living a perception,” they said in a press statement on Wednesday.

The Labour Party highlighted its record of social investment, citing increases in pensions by €70 per week over ten years, a €250 yearly rise in the Children’s Allowance, and the largest tax cut in history.

It also pointed out that measures like stamp duty exemptions for first-time buyers have long been in place, despite the PN now presenting them as new ideas. The Government, they said, remains committed to protecting families through economic support.