Pasta, tea and cream crackers are just a few of the products set to have their recommended prices reduced over the next two weeks, according to a list of products seen by . era of marta.
This comes as the Ministry of Economy puts pressure on importers and retailers to reduce the recommended retail price (RRP) of certain key food items by up to 15%.
Supermarket chains Wellbees, PAVI and PAMA had already reported that they had agreed to the measure.
And industry insiders say the “absolute majority” of carriers are now signed up.
The move follows nearly 18 months of consumer concerns about inflation, with grocery shopping frequently highlighted as a notable increase in expenses.
Following news of the scheme, a full preliminary list of products slated for reductions was shared by industry stakeholders.
Everyday cupboard essentials such as long-life milk, canned tuna, corn flakes and instant coffee will be included alongside vegetable spreads, fresh and frozen meat products, frozen vegetables and frozen French fries.
The ministry has listed a total of 15 products across all brands eligible for price reductions, but the list is subject to change before the final announcement later this month.
Officials said the list was widely distributed among operators when the economy ministry first began consulting with industry about the plan.
Others say the list has been revised following individual negotiations with Economy Minister Silvio Schembri, while others report that it has remained unchanged since it was first published.
No compensation
Importers and retailers have been asked to absorb the costs of the scheme, with no compensation such as tax rebates or credits being offered to cushion the blow, industry sources said.
Some insiders say the company will “likely” have to hike up prices on other products to make up for potential losses.
we’ve gone backwards instead of forwards
One source said the talks felt like bullying, with agreements forced on operators by the economy ministry.
The ministry announced it would fund a publicity campaign to promote the plan, insiders said.
One source derided the tactic as nothing more than a political stunt to make a good impression on the government. Those who don’t register will be seen as charging exorbitant fees by comparison, the person said.
The comments reflect widespread anger at the system among industry insiders, with one source saying the move was a nod to the time when the government set the prices of some food items. “I feel like I’m back in the 1980s,” he said.
“We have gone backwards, not forwards,” one official said.
But despite concerns that the system could put companies at risk of violating antitrust laws that prohibit price-fixing, importers must address steady price increases due to increased shipments. This move is likely to be welcome news for consumers who don’t want to buy. Costs and the Ukraine war.
And just this month, an EU environmental tax called the Emissions Trading Scheme was applied to the maritime sector, raising concerns about further rises in import prices.
According to industry sources, the list of products included in the upcoming plan was selected from the retail price index. The Retail Price Index is a list of commonly placed items in shopping carts whose prices are tracked to measure the movement in the cost of consumer goods.
In November, the latest month for which data is available, the Office for National Statistics said the biggest upward effect on annual inflation was measured by the food index, which rose by 1.62 percentage points.
This was in contrast to the same month when the annual inflation rate fell slightly from 3.7% to 3.6%.