Alleanza Kontra l-Faqar (AFK) have reminded the Government that the increments to compensate the increase in cost of living are not enough for a number of low earners
They stated that calculating the rate of inflation through the Price index (PRI) on which COLA is calculated does not reflect the actual inflation rate.
According to AFK, different incomes reflect different necessities. Low earners spend tend to spend most on basic needs such as food, rent, medicinals and health services that are not provided by public services.
NSO and EUROSTAT statistics show that necessary products and services’ ‘cost is increasing more than other things’.
The lack of a proper adjustment is creating more poverty as the calculations are not consiering people with low income. The value of their salaries and pensions is diminishing every year making it difficult for this sector of society to live a decent life.
AKF is asking the Government to correct these shortcomings during the Budget for 2019.