+6.4% on an annual basis, shopping cart at +10.7% – Corriere.it

The decline in inflation continues, which in June marks its first cyclical change to zero since May 2021. The national consumer price index for the entire community (NIC), gross of tobacco, does not grow and it does not drop compared to the previous month, while it increases by 6.4% on an annual basis from +7.6% in May. This was revealed by Istat in its preliminary estimates: In June, inflation shows a marked deceleration, in a context of consumer price stability on the economic level. The slowdown in inflation continues to be strongly influenced by the dynamics of the prices of energy goods, comments the institute.

Energy goods

Inflation recorded in June remains stable at +5.6% for the general index, while for the core component it rises to +4.9%. Core inflation, excluding energy and fresh food, slowed further (from +6.0% to +5.6%), as did that excluding energy only (from +6.2%, recorded in May, +5.8%). Based on preliminary estimates, the harmonized index of consumer prices (Ipca) increases by 0.1% on a monthly basis and by 6.7% on an annual basis (a clear deceleration from +8.0% in May), Istat states. The cyclical stability of the general index was affected by the opposing dynamics of various components: on the one hand, the growth in the prices of unprocessed food, recreational, cultural and personal care services (both at +1%), processed food (+0.5%) and services relating to transport (+0.3%), on the other hand, the decrease in the prices of unregulated energy goods (-4.5%) continues Istat.

The food sector

On an annual basis, the growth in the prices of goods slowed down (from +9.3% to +7.6%) and, to a lesser extent, that of services (from +4.6% to +4.3%). bringing the inflation differential between the services and goods sectors to a -3.3 percentage points, from -4.7 in May. The slowdown in inflation continues to be strongly influenced by the dynamics of the prices of energy goods, in particular of the unregulated component, which is appreciably slowing down compared to the previous month. In the food sector, the year-on-year growth of the prices of processed products shows a further slowdown, which contributes to the deceleration of core inflation (down to +5.6%). Lastly, the phase of slowdown in the trend growth of shopping cart prices continues, which in June was +10.7%.

Sting of over 1,300 for families

With the updated Istat estimates, the National Consumer Union has calculated that for a couple with two children – explains the president Massimiliano Dona – the sting is equal to 1,830 euros on an annual basis. Of these, 861 are used only to meet the 11.2% price increases for food and drinks. For a couple with a child, the additional expense equal to 1,670 euros, of which 777 for food and drink. On average for a family, the blow is 1,389 euros, 632 for food and non-alcoholic beverages. The primacy, in spite of the incentives for the birth rate, to large families with more than three children with a blow that exceeds two thousand euros, 2,066 euros, 1,029 just to feed and quench their thirst.

Poverty rate and business difficulties

Italians spent almost 4 billion euros more on food, but due to high prices they had to cut the quantities purchased in the first six months of 2023. Coldiretti explains this in an analysis of Fead data, highlighting the continuous rise in prices of food products. Families cut back on purchases and go hunting for the lowest prices – underlines the organization -. I am over 3.1 million poor people have asked for help to eat using soup kitchens or food parcels for a total of 92 thousand tons of food distributed in the last year. The emergency extends to farms affected by the bad weather which decimated the crops and by the low prices paid to production which in many cases do not even cover the production costs with the risk of abandoning entire territories.

Industry turnover down 1.8%

Reversal of the turnover of the industry in the month of April, according to Istat estimates. In April, the industry figure, net of seasonal factors, decreased by 1.8%, in economic terms, recording a negative trend both on the domestic market (-2.5%) both on the foreign market (-0.5%). The trend figure, corrected for the effects of the calendar, marks -1.8%. In the February-April quarter, the overall index decreased by 0.4% compared to the previous quarter (-0.1% on the domestic market and -1.3% on the foreign market). This is the second consecutive economic downturn. With reference to the main groupings of industries, in April the seasonally adjusted turnover indices show a cyclical decrease for consumer goods (-1%), capital goods (-2.2%), intermediate goods (-2. 8%), while a slight increase was recorded for energy (+1.9%).

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