Confcommercio: families in difficulty in April, inflation is weighing
In April the Misery Index Confcommercio it stood at an estimated value of 16.7, a moderate increase compared to the previous month. Last month’s figure is the synthesis of a recovery in inflation for the prices of frequently purchased goods and services and a slight improvement in the unemployment component. Also in April the labor market showed signs of vivacity.
The number of employed increased by 48 thousand units on the previous month and people looking for work decreased by 14 thousand units; in the same period the number of inactive people fell by 25,000. These dynamics brought the official unemployment rate to 7.8% (7.9% in March). In the same month, the authorized hours of Cig were just over 23.3 million (figure in line with pre-Covid levels), to which must be added less than 1.2 million hours for checks disbursed by solidarity funds. In terms of CIG hours actually used, seasonally adjusted and referred to ULA, it is estimated that this corresponds to around 40,000 standard work units.
The combination of these dynamics led to a slight reduction in the extended unemployment rate which fell to 8.6%.
The prices of goods with a high frequency of purchase are rising
In April the prices of frequently purchased goods and services showed a trend variation of 7.9%, up on the previous month. The first estimates for May signal a slowdown in the growth rate of prices for this type of goods and services (+7.1% on an annual basis). The data of the last few months, while confirming the solidity of the recovery process, do not alleviate the fears of a non-linear and rather gradual path. In this context, therefore, many elements of uncertainty remain regarding the possibility of a decisive downsizing, in the short term, of the area of social unease. The difficulties of families could translate into a slowdown in demand and in the economy, with negative effects on the labor market whose positive dynamics have contributed significantly to maintaining the spending capacity of families.