Watch: ‘We Started A Price War’ – Robert Abela Hails Impact Of Food Cost Reduction Scheme
Prime Minister Robert Abela has said the government’s Stabbiltà food reduction scheme managed to kick off a price war among supermarkets.
“The scheme’s biggest impact goes beyond the actual social pact that we signed with supermarkets and food importers,” Abela told a press conference.
“We created a price war. Who would have ever imagined that we would create a price war among supermarket owners? We knew it would happen, but it played out exactly as we expected.”
“While 450 products are directly part of the Stabbiltà scheme, supermarket owners are competing over who can slash prices most on other products, I believe that this competition to attract clients was the major effect of this scheme.”
Introduced in February, Stabbiltà saw food importers and retailers sign a commitment to reduce the recommended retail price (RRP) of 15 basic food items by 15% and shoulder the difference. Over 500 establishments have signed up to the scheme, which will run until the next Budget.
Besides Stabbiltà, the launch of the Italian low-cost supermarket chain Eurospin is also being credited with disrupting the food market.
Have you noticed a reduction in food prices?
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