Price and quantity indices of food imports in Malta : 1856-1938

Abstract

In their annual Blue Books for the Maltese colony, the British kept meticulous records on both prices and quantities of every imported commodity, producing a rich and complete data set of imports for that period. This paper uses the data collected by the customs officers during the British rule in Malta, between 1856 and 1938, to calculate several indices to find the general price level of food imports, imported inflation, and the level of food quantities imported. The paper also attempts to compare the price level in the Maltese Islands with that in other countries. Price and quantity indices are produced for a number of individual commodities and for aggregate imports. Three different index number formulae are employed in the paper, namely the Laspeyres, Paasche, and Fisher. Overall indices are constructed using two alternative methods: first using the basic specification of each of the three methods, and then using yearly updated expenditure weights - the chain-linked method. Although the data set is simple and uncomplicated by today's standards, one notes that the indices provide an excellent insight in the computation of the price level of imported goods and standard of living in Malta during the British rule.