PN slams government over soaring cost of living, urges immediate action

The Nationalist Party (PN) has renewed its criticism of the government’s handling of the economy, warning that Maltese and Gozitan families are facing a rapidly deteriorating cost of living situation compared to the rest of Europe.

Citing the latest Eurostat statistics, the PN said Malta now ranks among the EU countries with the highest inflation rates, far exceeding those recorded in nations like Finland, Germany, Cyprus, Italy, France, and Spain.

However, a look at the same Eurostat figures shows that the countries mentioned by the PN have the lowest annual rates of inflation in the entire bloc. Malta has the 11th lowest rate of annual inflation in the euro area.

While Malta's monthly inflation rate is among the highest in the EU, the measurement used by Eurostat also takes into account expenditure by non-resident households, including foreign tourists. 

According to the Eurostat figures, Malta’s inflation rate in June 2025 stood at 2.5%, which is 0.5% higher than the EU average. The lowest inflation rate was 0.5% in Cyprus, while Romania saw the highest rate at 5.8%. 

During the PN’s press conference, shadow minister Ivan Castillo and candidate Joseph Grech said that other countries were experiencing a decline in their inflation rate while Malta saw an increase. 

They reminded the public of its proposals aimed at addressing the rise in cost of living, such as removing tax on COLA increases, a tax exemption on the first €10,000 earned from part-time and overtime work, and a fund for importers and exporters to offset transport costs and contain prices.

“To ease’s people’s burdens, the government must step out of its ivory tower, roll up its sleeves, find the political will, and implement measures that can truly make a difference in people’s lives,” they said.