Food price increases calm down in February

Food prices increased by 5.5% in February when compared to the same month last year, exhibiting a significant slowdown in price rises, figures out today show.

The Retail Price Index (RPI) published by the National Statistics Office shows that the annual overall rate of inflation in February stood at 2.3%, down from 3.2% in January. The RPI is the index used to calculate the annual cost of living adjustment (COLA).

A deeper analysis of the food index shows that the price of food, excluding restaurant services and take-aways, registered a month-on-month drop of 1.8%. It represented the largest month-on-month decrease from all categories.

This suggests that the food price stability scheme, Stabbiltà, introduced on 1 February has helped depress food prices. The scheme agreed between the government, major importers and supermarket chains, lowered the recommended retail price on 15 staple food items by 15%. The arrangement will remain in force until October.

Nonetheless, the RPI shows that the highest annual inflation rates in February were registered in Food (5.5%) and Other goods and services (5.1%). On the other hand, the lowest annual inflation rates were registered in Transport and communication (-2.3%) and Water, electricity, gas and fuels, which registered no change as a result of government’s fuel and energy subsidy to keep prices stable.