Former Prime Minister and now chairman of MPFCA, Joseph Muscat has recently posted on Linked.In his views on inflation in the country. He also recommended  and put forward five hard facts towards not only the government but also stakeholders.

He said that in his opinion the analysis on inflation rates tend to be more superficial and most of the time focus more on figures found in headlines rather than reports.

He went on to say that at 6.1%, Malta’s inflation is the lowest in the Eurozone countries, because of the  government’s policy to absorb energy and fuel price shocks. Even though this strategy is expensive in Muscat’s opinion it only helps local consumers and business.

However he later goes on to state that without energy and fuel contributions to inflation, Malta has one of the highest cost of living in Europe, the eight highest in the Eurozone to be precise.

He also recommended to  the government that they simulate the economy without fear. This means not being cautious to decrease spending, increase taxes and make further controversial decisions which will work in the long run.

Muscat also points out the need for policy and fiscal measures aimed at the transport and logistics part of the economy. This is because an increase in transport will not work in the long run due to Malta’s geographic size.

The former Labour Leader ends his post by motivating trade unions and employers representatives to tackle the small minority of economic players who  are taking advantage of the current global narrative to artificially inflate prices.

#MaltaDaily