Saturday, July 23, 2016

Discount Italy, deflation and price swoop – The Time

B_C-I_WEB

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Prices dive, families in need, a situation that brings us back to the ’50s. Very far from that recovery heralded by Renzi. Italy in 2016 tends to deflation and prices marked a decline of 0.2 percent in the first half of this year. A trend that could be recorded, for the first time since 1959, a variation of negative prices. But in that ’59 where Pietrangeli won at Roland Garros and Antonio Segni became prime minister, the Italian GDP was flying jet, with an astounding 7 percent. But today, after a long period of crisis, economic growth is at risk and reviewing studies centers downward the outlook for 2016, with rates below 1 percent.

the last Office analysis Studies Association of Artisans and Small Companies Mestre Cgia, reveals that of 200 products examined deflation has hit fewer than 68 cases. And, beyond particular sectors such as hi-tech where technological progress allows the prices (-12.7 desktop computer percent) and energy products (diesel and petrol cars -12.5 -7.6 ) which benefited from a price of cheap oil, and below $ 50 a barrel throughout the first half of 2016, deflation has also affected other areas of spending, in particular many food products. Tomatoes (-7.2 percent), salad (-2.4), sugar (-2.4) and ice cream (-2.0) are the products that have seen the greatest reduction in prices, but the food list with the minus sign is long: peaches / nectarines (-1.8 percent), breakfast cereals (-1.6), oranges (-1.4), flour / other grains (-1.2), bananas ( -1.2), yogurt (-1.2); scrolling through the list of the food currently close to thirty with a minus sign.

“The fact that so many food products have undergone a sharp depreciation – said the research office coordinator CGIA, Paul Zabeo – is an indication of the difficulties facing the Italian families. Despite consumption they have recorded a slight recovery, remain very far from the levels reached before the crisis. Since 2007, in fact, they declined by about 6 percentage points. ” Among the products, however, have experienced price increases there are postal services (+9.8 percent), handheld / tablet (8.2) enjoying a growing demand. Some food also increased, such as +8.2 percent potatoes, olive oil +5.3, +3.1 to +3.2 apples and pears. Scrolling down the list of the top 50 increases there are other downsides for families struggling with paying bills: water supply (+4.5 percent) and sewerage (+4.2) represent increases that zero or almost all benefits arising from the reduction in gas prices (-7.6 per cent) and, in part, electricity (-0.2) occurred in the first half of 2016. Among other things in the third quarter of 2016 rates for electricity and gas could go to increase (by the time the Tar Lombardy has “frozen” the increases, but the final decision will have to wait the month of September). A situation that makes it clear Coldiretti, threatens the future of the iconic products of Made in Italy.

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Antonio Angels

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