energy prices are rising again – Corriere.it

In April 2023, the national consumer price index for the entire community (NIC), gross of tobacco, is estimated to register an increase of 0.4% on a monthly basis and 8.2% on an annual basis , from +7.6% in the previous month; the preliminary estimate was +8.3%. This was noted by Istat, specifying that the inflation recovery phase is interrupted, mainly due to a new acceleration in the trend dynamics of the prices of unregulated energy goods. On the other hand, the prices of processed and unprocessed food products are holding back.

The prices of energy goods are rising

The acceleration in the inflation rate is primarily due to the increase on a trend basis in the prices of non-regulated energy goods (from +18.9% to +26.6%) and, to a lesser extent, those of recreational, cultural and personal care services (from +6.3% to +6.9%) and various services (from +2.5% to +2.9%). These effects were only partially offset by the more marked decline in regulated energy prices (from -20.3% to -26.7%) and by the slowdown in processed food prices (from +15.3% to +14. 0%) and unemployed (+9.1% to +8.4%), services related to housing (from +3.5% to +3.2%) and transport-related services (+ 6.3% to +6.0%). Istat also specifies that core inflation, net of energy and fresh food, records a slight slowdown from +6.3% to +6.2%, as does that net of energy goods alone, which from +6.4% to +6.3%.

On transport and processed food

The cyclical increase in the general index is mainly due to the prices of services relating to transport (+2.4%), unregulated energy (+2.3%), recreational, cultural and personal care services ( +1.0%), processed food, non-durable goods and miscellaneous services (all three at +0.5%); these effects were only partially offset by the drop in regulated energy prices (-19.6%). Again at the economic level, the harmonized index of consumer prices (Ipca) increased by 0.9% on a monthly basis, a more marked increase than that of the Nic, due to the end of the seasonal sales which also partly extended into March.

Inflation acquired for 2023 equal to +5.3%

The rekindling of the cost of living in April, Istat explains, is mainly caused by the acceleration in the prices of the expenditure divisions which include energy products, i.e. housing, water, electricity and fuel (from +15.1% to +16.9 %) and transport (from +2.6% to +5.1%), to which must be added a more limited acceleration in the prices of recreation, entertainment and culture (from +3.9% to +4.9% ), hospitality and restaurant services (from +8.0% to +8.4%) and other goods and services (from +3.8% to +4.4%). These dynamics were only partially offset by the deceleration in the prices of food products and soft drinks (from +13.2% to +12.1%), furniture, household items and services (from +7.8% to +7.4%) and communications (+0.9% to +0.4%. Inflation acquired for 2023 equal to +5.3% for the general index and +4.5% for the background component.