Inflation in Italy, Istat data for June 2023: “significant decline”

In June, inflation in our country fell to 6.4%, from 7.6% in May. This is what was communicated today to Istat. The Statistical Institute underlined that it is a matter of “a clear deceleration”, which continues to be strongly influenced by the dynamics of the prices of energy goods in sharp decline.

Core inflation, excluding energy and fresh food, slowed further (from +6.0% to +5.6%). Lastly, the phase of slowdown in the trend growth of “shopping cart” prices continues, which in June was +10.5%.

The slowdown in inflation is good news for consumers and for the Italian economy, but the figure, as also noted by Istat, is clearly influenced by the trend in energy goods and, for some sectors such as food and transport, the price lists continue to remain at very high levels. This was stated by Codacons, commenting on the data released today by Istat.

«The deceleration of inflation to 6.4% is equivalent to a higher annual expenditure equal to +1,872 euros for the “typical” family, +2,425 euros for a household with two children – analyzes Codacons – The drop in bills, especially on the free market, has had a not indifferent influence on the inflation rate, but not all sectors benefit from these positive effects: food, for example, recorded a still very high annual increase in prices in June, +11%».

«Then there is the acceleration of tariffs in the transport sector, which is affected by seasonal factors and the arrival of summer – denounces Codacons – The prices of air tickets in fact rise on average by +23.5% on an annual basis , with peaks of +28.9% for domestic flights, while on a monthly basis they even increase by +10.9%, with peaks of +17.8% for domestic routes”. The association explains that ferry fares are also growing again, registering a cyclical increase of +6.1%.

«Analyzing the trend of retail price lists in large cities with more than 150,000 inhabitants, we discover that it is Genoa that has the highest inflation, with a rate of +8.5%, followed by Florence (+7.6% ); bringing up the rear Potenza, where in June prices grew by only +3.8%» concludes Codacons.

The double speed problem

«The drop is good, but it’s not enough. The slowdown in inflation is proceeding too slowly after the drop in the cost of energy which has now lasted since January, over 6 months ago, and the repeated interventions by the ECB. An unsatisfactory reduction, which leaves a bad taste in the mouth. In short, we are faced with the usual double-speed problem: companies are immediately ready to raise prices as soon as production costs rise but much slower to bring them down when the trend is reversed» says Massimiliano Dona, president of the National Consumer Union, commenting on the Istat data.

The association calculates that «for a couple with two children, the +6.4% means a sting equal to 1834 euros on an annual basis, of which 846 are used only to meet the 11% price increases for food and drinks. For a couple with 1 child, the additional annual expense is equal to 1673 euros, 764 for food and drink. On average for a family the blow is 1390 euros, 620 for food products and soft drinks. The primacy goes to large families with more than 3 children, the only ones to still have a blow of more than 2000 euros, 2068 to be precise, 1010 just to feed and quench their thirst».