Malta’s government, food importers and retailers have signed a new agreement aimed at slashing basic food prices for the next nine months.

Through this scheme, food importers have committed to reduce the recommended retail price (RRP) of 15 basic food items by 15%, with importers and retailers agreeing to shoulder the difference.

The RRP is the price that importers recommend to retailers for their products, who can then opt to stick to that price or lower it to become more competitive.

So, for example, if a retailer is selling an item at the full RRP of €1, they must now sell it at a maximum of 85c. If another retailer is selling that same item at 90c, they must sell it at a maximum of 85c too.

It will kick in on 1st February and last around nine months, until the date the government announces its Budget for 2025. The government estimates that inflation could subside by then and market prices will adjust on their own.

Discounted products will be marked with a label showing they are being discounted thanks to this initiative. It will apply to both in-store and online purchases.

The government has pledged to monitor the market, including via mystery shopping, to ensure businesses are following the directives and has reserved the right to name and shame establishments that aren’t following the rules. It has also pledged vigilance via the MCCAA to ensure they don’t abusively hike other products in compensation.

Around 200 establishments, including all the major supermarkets and chains, have signed up so far. Other shops that want to join the scheme can apply and, once signing the agreement, their shop’s name will be displayed on the campaign website.

Smaller establishments whose total sales didn’t exceed €800,000 in 2022 will be compensated through a fixed grant of €125 a month for the duration of the scheme.