Wednesday, January 4, 2017

Deflation, Istat: “In 2016, prices decreased 0.1% for the first time since 1959″. Consumers: “the Result of the collapse in consumption” – Il fatto Quotidiano

In 2016 prices the average drop of 0.1%. Communicates that theIstat, pointing out that had not happened since 1959, when the decline was equal to -0,4%. Then, however, the Italian economy was in strong growth, not in the weak recovery, as in the days of our. Core inflation, calculated net of food fresh and energy products, however, still remains in positive territory (+0.5%), and even slowing the growth compared to +0.7% in 2015. In December, however, there has been a change signal: the rate of inflation has jumped, with prices that, according to preliminary figure s, have grown by 0.5% with respect to December 2015, the largest increase in two and a half years. Compared to November 2016, the price index has grown instead of 0.4%. The recovery is mainly due to the acceleration of the growth of prices of services related to transport (+2,6% +0,9% in November), the energy non-regulated (+2,4% +0,3% in November) and food not worked (+1.8%, the was +0.2% the previous month).

According to Paolo Mameli, economist Intesa Sanpaolo, the lift in progress will continue in the coming months and represents a sign of normalization. "However, it will be very slow, because, once you become less than the statistical effect on the energy, will prevail in the dynamic absolutely contained price core. For 2017, we expect an increase in consumer prices of at least 1%, after three years of substantial stagnation," writes Mameli.

associations of consumer do not exult for the price drop in 2016, rather report them as this trend proves, that the Country is still in crisis. More underline the surge of December was primarily determined by the rise of petrol and diesel, and not from the recovery of the consumption. The New on the one hand underlines that deflation brings Italy back 60 years, leading to recessionary effects for the whole economy of the country" and "is the result of the collapse record consumption" that "in the last 8 years have been a decline of 80 billion euros," the other pointed the finger against the increases in the prices of December. "The leap in prices in the last month of the year is to be attributed solely to the high price of gasoline, with distributors of fuel, which were strongly posted lists, resulting in increases in all sectors", he wrote in a note to the president Carlo Ri enzi. the Federconsumatori and Adusbef in a joint statement they say, in their turn, "worried about the first signs that come to us about significant increases in the prices of fuels, highways, electricity and gas". According to the two associations, "the government must put in place capillaries, controls to prevent cause intolerable mechanisms speculative at the expense of the citizens."

According to Massimiliano Dona, president ofthe National Union of Consumers, "the fact that Italy is in deflation and that this had not happened for over half a century, that is, from 1959, shows that despite the recession is technically over, the Country is still in full the crisis and the question is hard to start again". "We are concerned, in the perspective – continued Dona – the monthly increase of the energy goods non-regulated (+1,1%), due not to a recovery of domestic demand. In just one month, there were increases in the prices of all fuels, from diesel fuel for transport (+1,5%) and petrol (+1,0%). Also heating oil rose 1.8%. If you add to this that the Istat has not yet incorporated the sting of January of +0.9% for the electricity bill and by 4.7% for gas, with an increase of annual expenditure, family type, 52,50 euro, 4.5 euro for the light, and 48 euros for the gas, here the picture become s alarming." "For this, the government Gentiloni should intervene at least on the taxes on gas, that is the 38,18% and put hand to the system costs, on electricity, that is at 20,36%", hopes the president of Unc.

The Coldiretti from his part, laments the "devastating effects in rural areas, where the prices paid to farmers collapse by an average of approximately 6% in 2016, and in some cases, such as for the wheat, do not cover even the cost of production". "Farmers in 2016 – complains Coldiretti – have had to sell more than three litres of milk to share a coffee or fifteen pounds of wheat to buy for ourselves one of the bread, but the situation is no better for the egg, meat or for some horticultural products. In spite of the collapse of prices of agricultural products in the countryside on the shelves the prices of food commodities have increased 0% in 2016, also due to the speculation and distortion of the chain in the transition from the field to the table. To affect – emphasizes the farm organization – is also in the flo w of the imports the wild that are unfair competition for the lack of a clear indication on the origin on the label".

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