MILAN. Inflation won’t let go. Even though today Istat slightly revised its estimate on consumer prices for April downwards, the cost of living still remains at guarded levels. The families who deal with leavened shopping receipts know something about it every day. The “shopping cart” is increasing, albeit at a lower rate, which, with prices down to +11.6% from +12.6%, still remains on double-digit increases.
Based on the final data released this morning, the Nic index showed increases of 0.4% on the month and 8.2% on the year, compared to the preliminary figures of +0.5% and +8.3% respectively . In March it had recorded a decrease of 0.4% on a monthly basis and an increase of 7.6% on an annual basis.
April was the month in which the inflation recovery phase suffered a setback, driven by the rise in energy prices. However, the core component has shown signs of a first slowdown for almost two years.
«In April, the inflation recovery phase was interrupted, mainly due to a new acceleration in the trend dynamics of the prices of unregulated Energy Goods, the trend of which reflects an increase on a monthly basis of 2.3% (which compares with a -3.9% in April 2022)» explains the Institute of Statistics.
Core inflation, excluding energy and fresh food, recorded a slight slowdown from +6.3% to +6.2% – as did that excluding energy only, which fell from +6.4% to +6.3% – highlighting the first deceleration since May 2021.
«In the food sector, the prices of processed products, as well as those of unprocessed goods, show a slowdown in their growth on an annual basis, which contributes to the slowdown in core inflation» observes Istat, adding that it is accentuated also the slowdown on a trend basis in the prices of the “shopping cart” which fell to +11.6% from +12.6%.
And consumers
Despite the slightly declining data, concern remains high. Consumer associations are looking at the still high levels and the weight of the shopping cart. «The slowdown in inflation recorded in the last two months turned out to be an “optical illusion” due to the decrease in electricity and gas bills and, once the calming effect of energy goods ended, the rate returned to a worrying rise – comments the president of Codacons Carlo Rienzi – Inflation at 8.2% is equivalent to a higher expenditure of +2,398 euros per year for the “typical” family, which rises to +3,106 euros for a nucleus with two children, a sting caused by the still sustained growth of items such as food and the shopping cart, sectors which respectively mark +12.1% and +11.6% on an annual basis, while products with a high frequency of purchase mark a +7, 9%».
Then there are very strong territorial differences in terms of retail prices. Codacons, on the basis of the provincial data released today by Istat (municipalities with over 150 thousand inhabitants), has drawn up the ranking of the cities where inflation grows the most in April, and the related spending effects on families based on average consumption of resident citizens. Genoa is once again the city where inflation is growing the most, with a rate of 9.7%, with Potenza bringing up the rear, where prices increase by only 5.8% on an annual basis. In Milan, the heaviest repercussions, with the “typical” family which, due to 9% inflation, spend 2,443 euros more on an annual basis.
«Inflation rears its head above all due to the Government’s fault, which in April restored all system charges on electricity and most of those on gas, causing energy prices to take off, especially unregulated ones considering that the light of the protected in April, however, fell for the simple technical reason that the previous prices were still those fixed at the end of December 2022. In just one month, electricity for free gas rose by 8.8%, gas by 8.1%» he says Massimiliano Dona, president of the National Consumer Union.