Cost of living and inflation top of the agenda for MCESD

The Maltese Council for Economic and Social Development’s (MCESD) focused on the pressing issues of the cost of living and inflation during its 10th council meeting.

The MCESD is an advisory council which issues opinions and recommendations to the Government on matters of economic and social relevance. The council is made up of several representatives from the private sector, unions and Government. It is led by its chairperson David Xuereb.

Social partners engaged with the Governor of the Central Bank of Malta (CBM) Edward Scicluna, Minister for Finance and Employment Clyde Caruana and Parliamentary Secretary for Social Dialogue Andy Ellul.

Discussions revolved around challenges that the manufacturing sector faces with regard to transportation and logistics, worker wages, the skills gap that the economy faces in nearly all industries, the standards of living, and the cost of living.

Professor Scicluna emphasised the primary role of the CBM, which is to maintain an inflation rate of two per cent.

Currently, the rate of inflation is projected to only drop to 5.3 per cent by the end of 2023.

During his presentation, he highlighted the sectors most impacted by inflation, with the food sector experiencing the greatest upward effect, partially due to reduced energy prices.

Furthermore, he detailed the Harmonised Index of Consumer Prices (HICP), a metric used to measure consumer price inflation in the euro area.

The HICP tracks changes in the prices of goods and services purchased by households, providing insights into cost fluctuations.

Minister Caruana shared his insights on this significant and sensitive matter to the country, its economy and its competitiveness. He highlighted the Government’s efforts in supporting Malta’s economy and emphasised its strength compared to other European countries.

The MCESD reiterated its commitment to analysing, discussing, and providing recommendations on topics related to the economy and society, ensuring that the interests of both workers and employers are addressed.

Featured Image: Edward Scicluna during the MCESD’s 10th council meeting via mcesd.org.mt