Inflation is slowing in Italy, but rising again in the rest of the eurozone. This is the picture that emerges from the forecasts published today by Eurostat regarding the trend of consumer prices in the last month of 2023. In December, the index stood at 2.9% compared to 2.4 in November. Inflation is therefore starting to rise again: this figure is due, first of all, to the less pronounced decline in energy prices compared to that recorded in November (6.7% decline compared to 11.5% in the previous month), but also due to the increase in food prices. impressed. Alcohol and tobacco prices increased by 6.1%, although they were below 6.9% in November.
The good news is that Italy is going against the trend: according to Eurostat, the estimated inflation in our country in December was 0.5%, while in Germany it was 3.8%, in Spain 3.3% and in France it was 4.1%.
The data was welcomed by Adolfo Urso, Minister of Trade and Made in Italy: “Excellent news for Italian families,” he writes in X. “Inflation in Italy is the lowest in Europe, a complete success of the tricolor tram.” . The prophets of doom have been proven wrong!”.
Great news for Italian families:#inflation lowest in Italy #Europe, the complete success of the “tricolor car”. It turns out that the prophets of disaster were wrong!#tricolortram @mimit_gov pic.twitter.com/thpah0M5Mv
— Adolfo Urso (@adolfo_urso) January 5, 2024
What is a tricolor car
But is this really thanks to the ‘tricolor car’? The initiative was launched by the government with the aim of reducing the costs of basic needs, signing agreements with various supermarkets and distribution chains. The measure was in effect for only three months: from October to the end of December. Minister Urso stated that “once the goal is achieved”, there would be no need to expand the initiative, considering this to be “a gamble that won”. However, field investigations by newspapers and consumer associations revealed a slightly different reality than that conveyed by the executive. Discounted items did indeed appear on shelves, but often led to very modest savings.
The decline in energy and fuel prices affects inflation
In any case, the slowdown in inflation, which became evident in December but started in recent months, is “mainly affected by the decrease in tension in energy goods prices,” especially when compared to 2022 data, Istat confirms. On the contrary, despite the slowdown in inflation in recent months, prices in the food sector show “an acceleration in average annual growth (+9.8% from +8.8% in 2022).” In any case, Istat data shows that in December, expenditures on housing, water, electricity and fuel were -19.3% compared to last December, while expenditures on food products were still increasing (+5.9%).
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
