And exports falling and deflation, the Italian economy suffers – The Republic

MILAN – The engine of the Italian car is likely to jam. To have a clearer picture we will need to wait until tomorrow, when the Istat will release data on second-quarter GDP, but in the meantime the incoming signals are anything but encouraging. First was the industrial production to score, in June, a heavy setback, then came the inflation and even exports.

In short, despite the words of confidence of the government and the liquidity injection ECB holds that the low interest rates and reduce the cost of debt by releasing fresh resources for growth, the Italian economy barometer still draws to serene. In July, Italy remains in deflation, albeit with less intensity, does not stop the fall in prices at year mark -0.1% (-0.4% in June).

It must be bad also in terms of foreign trade: in June, exports fell by 0.4% compared to May and by 0.5% on 2015, while imports remain firm and falls of 6.1% in twelve months demonstration that have not yet broken down consumption. So Italy trying to get out of the crisis is a country patchy, where cities give signs of recovery, while the campaigns are likely to sink completely.

Just think that prices in a year durum wheat, almost half (42%). “For us it is deep deflation – complaint Coldiretti – the prices plummeted to crops and farms that do not cover even more the production costs or livestock feed. Today farmers have to sell three liters of milk to drink a coffee or fifteen pounds of grain to comprarsene one bread. “

in retail prices, the scaling of deflation on an annual basis the overall index was mainly due to faster growth of unprocessed food ( + 1.5% from + 0.7% in June), recreational, cultural services and personal care (+ 0.8% from + 0.4%) and transport-related services (+0, 7%, from + 0.2%); Moreover, it reduces the drop in the regulated energy prices (-5.9% from -6.8%).

In general, however, the continuing decline in energy prices (-7 , 0% compared to July 2015), though less extensive than that recorded in June (-7.5%), goes on to explain the downward trend in consumer prices in July. Net of these goods inflation is positive and accelerating compared to June (+ 0.6% from + 0.4%). The inflation for 2016 amounted to -0.1% (from -0.2% in June). The overall increase in the index of consumer prices compared to June was mainly due to seasonal factors that determine economic growth in the prices of transport-related services (+ 2.5%) and recreation, cultural services and care person (+ 0.7%).

the shopping cart, or the prices of food products, for the care of the house and of the person purchased more frequently decreased by 0.7% MoM, increase by 0.4% yoy (from + 0.2% in June). Prices of high-frequency products purchase decreased by 0.4% in quarterly terms and record, in terms of trend, a decline of -0.1% (from -0.2% in June).