The Malta Business Weekly

Families spending over €100 more per month in food compared to 2020, Caritas study shows

- SEMIRA ABBAS SHALAN

Families are spending over €100 more every month on food when compared to 2020, a newly published study by Caritas Malta shows.

NGO Caritas Malta presented the MiniMEBDL research study for the year of 2022, referring to the Minimum Essential Budget for a Decent Living, which showed a significan­t increase in food and medicine prices for low-income families.

Director of the NGO Anthony Gatt presented the study to the media on Tuesday morning, which included the prices of essential food and medicine items compiled into a basket.

The study includes prices up till February 2022, which does not include the inflation caused by the Ukrainian conflict, Gatt said.

“Different impacts such as the Covid-19 pandemic were reflected in the studies as well, including items bought specifical­ly for the pandemic,” he said.

University of Malta professor Suzanne Piscopo spoke about the study, which focused on three different types of families; two adults and two dependent children, a lone parent and two dependent children, as well as an elderly couple aged 65 and over. These families were classified as lowincome families.

The study identifies and prices a basket of goods and services for these families to be able to live a basic but decent quality of life, Piscopo said.

Compared to the 2020 study, the cost of the food basket increased by 17.75% yearly for two adults and two children, going up from a yearly cost of €7121.38 in 2020 to €8385.60 in 2022, making a €1264.22 increase.

The food basket includes a menu of seven days which is comprised of fresh fruits and vegetables and other food essentials from three different localities: the supermarke­t, a local fruit and vegetable vendor and the

Farmer’s Market in Ta’ Qali.

Due to the different types of families, a lone parent with two children saw a 22.20% increase in the yearly costs, whilst elderly couples experience­d a 24.92% increase.

The cost of vegetables and fruits proved to be the cheapest at the Farmer’s Market in Ta’ Qali, (€31.31) whilst the most expensive came from the fruit and vegetable vendors (€37.59).

The medicines and healthcare items basket included a list of basic medicines and other healthcare products a typical family uses, as well as the addition of the Covid-19 protection package, which included items to help protect against the spread of the virus or manage mild symptoms. These included a disposable mask, (one per day per person) sanitizer (six/nine/12 100ml bottles per year) and paracetamo­l, which included two extra boxes per household per year.

The two adults and two children family experience­d a 15.72% yearly cost increase for the medicine and healthcare basket as compared to 2020. Elderly couples were the most affected, seeing a 36.37% increase in this regard.

Moreover, the healthcare basket in addition to the Covid-19 package, saw an even larger increase in costs. Whilst the monthly expenditur­e for the basket without the Covid-19 package for the average family amounted to €29.60, the addition of the Covid19 package resulted into the cost increasing to €99.43.

There was an 18% to 25% increase in the cost of the food basket between the two years, with the highest increase being for the elderly couple (25%), Piscopo said.

Piscopo also said that there was a 12% to 36% increase in the medicines and healthcare basket, where elderly couples once again suffered the highest increase. Piscopo said this is due to the lower income the elderly receives.

Piscopo said that with the addition of the Covid-19 related items, it could mean that low-income families refrain from incurring these expenses due to financial hardships.

Caritas also made several recommenda­tions to help with the increase of these prices, which include foodbanks; meaning the setting up of hubs to collect food which is going to waste.

Piscopo also recommende­d the developmen­t of a no-waste food apps which connect low-income families with sources of extra or about-toexpire food which is going to waste, such as in cafes.

Among some of the recommenda­tions, the access to healthy foods was proposed, which included the extension of the FEAD scheme, to include complement­ary schemes of regular provision of fresh foods and vegetables. Subsidized vegetables and fruit weekly delivery schemes for the elderly was also recommende­d.

Better access to farmer’s markets was recommende­d, Piscopo said, adding that there should be an increase in the localities where farmer’s markets are organised, and the addition of direct buses from each main town towards the Ta’ Qali Farmer’s Market on Tuesdays and Saturdays.

Piscopo also recommende­d the introducti­on of healthy food prescripti­ons, which are vouchers for healthy foods prescribed by doctors at the onset of a chronic disease in lieu of an immediate high dose of medication.

Rebates for low-income earners on medicines was also recommende­d, Piscopo said.

Piscopo said that the study needed to be done to show the increase in prices, in the category of food especially, reflecting also the National Statistics Office’s statistics in this regard.

Prof Joseph Falzon zon, a director at Medina Asset Management, Relationsh­ip manager, Ann Marie Lia and Client Relationsh­ip associate, Christiana Teuma, also working for Medina Asset Management.

Medina Asset Management is an investment company licensed by the MFSA. Medina’s mission is to protect and grow the wealth of its clients. This is achieved by helping families and businesses to save and invest wisely, while always putting them and ethics first.

Teuma will provide a thorough explanatio­n of the fundamenta­l financial concepts used in finance. The definition­s of individual stocks and bonds will be followed by an explanatio­n of a portfolio of funds. She will outline the current events in the financial market, such as high inflation, rising interest rates and the effects of the ongoing war in Ukraine. She says: “Achieving long-term financial objectives entails embracing the risk-reward trade-off and comprehend­ing the historical dynamics of various types of investment­s.”

The salient takeaways from this session will be covered by Lia, where she will go through the main principles for investment success. To have a better chance at investment success, one has to focus on what s/he can control. It is very easy, and very tempting, to just focus on the market, the performanc­e of individual funds, or the economy, which can lead one to overlook the basic principles of investment success.

Lastly, Professor Falzon will provide a brief history of the stock market, covering market uptrends and declines while highlighti­ng the critical lessons of investing which is the fundamenta­l message of this BNI Business Briefing. One has to keep in mind that many of the market declines of the last decades are becoming faded memories and longterm investors know that the market and the economy generally recover over time. To give a real-life example, during the 2008 financial decline, the US market declined 48% and many investors sold off their holdings. However, after the market bottomed in March 2009, it eventually recovered to its former levels and well beyond. In fact, between the beginning of the bull market in March 2009 and the end of January of this year, the US stock market increased 6.4 times (15.4% increase per annum), which means that for every €100,000 invested in March 2009, this would have grown to €640,000 by the end of January. Prof. Falzon says: “Investors should be positioned for such a rebound, as in the long-term these short-term fluctuatio­ns do not affect one’s investment­s.”

The Malta BBB is a series of free online short sessions organised by Malta BNI that are held remotely at lunchtime via zoom. BNI is the largest and most successful business networking organisati­on with members and Chapters in over 74 countries.

Visitors are welcome to join these three speakers from Medina Asset Management Ltd, a BNI La Valette Chapter member, to learn about investment­s and why the stock market should be viewed as a vehicle to compound one’s wealth and be better off financiall­y.

Registrati­on is free and may be done at https://bit.ly/3vtNUE8. Contact Carmel Bonello at carmelbone­llo2020@outlook.c om, David Bullock at david.malta.bni@gmail.com or Viviana Premazzi at viviana@gmdmalta.com for additional informatio­n.

 ?? ?? University of Malta professor Suzanne Piscopo and Director of Caritas Malta Anthony Gatt. Photo: Viktoria Nikolla
University of Malta professor Suzanne Piscopo and Director of Caritas Malta Anthony Gatt. Photo: Viktoria Nikolla
 ?? ??

Newspapers in English

Newspapers from Malta