Price reduction pact, government prepares decisive blow to inflation

After merchants, retailers and large retail businesses joined the anti-inflationary pact, the Minister of Business and Made in Italy, Adolfo Urso, also received a yes from the food industries, which had initially withdrawn. «I am very pleased, the Italian system will participate in this anti-inflationary quarter, from October 1st to December 31st, to contain the prices of consumer goods, not just food. This is a success of the Italian system.” Urso, at the end of the meeting with the leaders of the consumer goods industry associations (Federalimentare, Unionfood, Centromarca and Ibc) confirmed that Italy will adopt all necessary measures to contain the prices of goods primaries in the October-December quarter and not: «We appreciate the will of the associations representing the consumer goods production industries that will participate in the anti-inflation pact together with distribution, traders, shopkeepers and also the other business associations that expressed their support , including artisans and cooperatives, in a collective effort to contain prices in the decisive quarter of the year, that is, from October to December. The tricolor cart will really be like this”, explained the minister who then addressed the merits of the issue: “It’s a basket that will contain food and much more, including household and hygiene products.In addition, pharmacy and parapharmacy associations will also participate. It is a basket of consumer products in which everyone will work to contain prices and this will give the final blow to inflation for the benefit of the entire system in the country, thus giving confidence to consumers who will be able to stock up on what they need at lower prices and expand the consumption for the production base.”

This closes an important chapter that began on August 4th, the day Urso signed a memorandum of understanding with representatives of modern distribution and traditional commercial associations. Based on this protocol, from October 1st the anti-inflationary quarter will begin in the shopping cart. Price control methods will be defined by September 10th, such as the application of fixed prices, promotional actions on identified products, or through initiatives in the range of branded products. Paolo Mascarino, president of Federalimentare, is satisfied: «Today’s signature confirms the Italian food industry’s great sense of responsibility towards the Government and consumers. Despite the fact that the sector has suffered very strong increases in the costs of raw materials, packaging and energy and has absorbed a large part of the increases due to inflation, the sense of responsibility and protection towards Italians and families in difficulty has prevailed within us . The gross margin of the food industrial sector reduced significantly, going from an average of 10.3% in 2019 to 5.7% in 2022, a clear sign that companies had to internally absorb part of the higher costs of the inflationary spiral by not pass them on to the final consumer”.

At the end of the table, Urso also spoke about rising bills and fuel prices. «We will have a discussion with Minister Giorgetti and the other competent ministers to understand and choose how to intervene, so that, above all, the less favored classes receive support from the public system and therefore from the government», he explained.

Source: IL Tempo