The reality on the ground is very different from what was portrayed in Robert Abela’s shallow speech, last Sunday. Inflation in Malta is still highly elevated, and this is despite the fact that energy inflation is subdued by government subsidies.
The problem with the latest reading of the Harmonised Index for Consumer Prices is that despite having previous months of sustained declines in energy prices and efficient restart of many supply chains across the globe (especially with China reopening), inflation of food prices in Malta remains high.
Another problem is that despite the subsidies in energy, energy inflation last year was still significant. Malta is currently paying an estimated 55% premium on its gas due to a botched deal the Maltese government did last year. The government is subduing this exorbitant expense to the consumer by subsidizing electricity bills. It’s basically the government subsidising its own incompetence.