Inflation, Associations sound alarm: “Sting on spending and bills. Government intervenes”

SP persistent inflation tests the consumer goods sector in Europe

(Finance) – The scenario determined by the increase in inflation worries the associations. After several months of almost uninterrupted growth according to the preliminary estimates released today by Istat, in July the consumer price index recorded an increase of 0.4% on a monthly basis and of 7.9% on an annual basis. Data that show a slight slowdown compared to 8% in June but still stand at the highest levels of the last 38 years.

“The alarm continues on the food front which also recorded a record surge in July, even increasing by 10% compared to last year – explains the president of Assoutenti, Furio Truzzi -. This means that a family with two children, just to eat, has to take into account a greater expense on average equal to +749 euros per year, an unprecedented sting. The government must intervene by abandoning the bonus policy and immediately cutting the VAT on primary goods such as food, in order to lead to an immediate reduction in retail prices and direct benefits for families. The real problem, however, is that of energy: without effective interventions, an ‘autumn drama’ on the bill front is looming, with consumers facing new heavy price hikes in the months in which they are increasing. use of gas and the possibility of reductions in supplies linked to the delicate situation with Russia “.

According to the calculations of Federconsumatori families will have to deal with an increase of 2,354 euros per year, of which 509.60 euros only in the food sector: significant increases which – underlines the association – mainly affect the poorest families, further increasing disparities and inequalities in the country. Citizens, in fact, are already making cuts and waivers, as well as adopting important changes in their consumption choices. “The Government – he affirms Michele Carrus, president of Federconsumatori – is called to intervene urgently to deal with this situation, which puts families and the entire economic system in difficulty every day. It is essential to adopt measures to support income by operating, on the one hand, a reform of the VAT rates and of the excise duties and general system charges in the bill, on the other, a reduction of the tax wedge on wages, together with a strengthening of social interventions, from the expansion of the ISEE thresholds for access to services to the increase in their economic value “.

“An optical illusion! The decline in annual inflation is just a mirage destined to vanish soon, due to the fact that just in July of last year the prices had started their mad rush, going from the + 1.3% trend of June 2021 at + 1.9%. In addition, fuels decelerated, but only due to the temporary increase in production in the Opec + countries, which is destined to cease in September. On the other hand, the increase in food and shopping cart prices is a catastrophe that will permanently bleed the housewife from Voghera who goes to the market every day and the families most in difficulty – comments Massimiliano Dona, president of the National Consumers Union -. The Government, even if in office only for the handling of current affairs, can and must intervene, as it is a national emergency that requires an urgent action. The next 14.3 billion of the bis aid dl must be destined to curb runaway inflation, otherwise any other intervention, such as the 3-month advance of the revaluation of pensions, is destined to be burned by the rise in prices and the reduction of power purchase of families “. According to the estimates of the UNC” inflation at + 7.9% means, for a couple with two children, an overall sting, in terms of increase in the cost of living, equal to 2630 euros on annual basis, but of these – explains Dona – as many as 769 leave only for the compulsory shopping of food and drink products, which jumped from + 9% in June to + 10%, 795 for the shopping cart. For a couple with 1 child, the total setback is 2441 euros, 694 euros just for food and drinks. On average for a family, the annual increase is € 2040, € 564 for food and drink, € 585 for the trolley. The record goes to large families with more than 3 children with a scoppola equal to 2951 euros, 919 only for food, 945 for food and for home and personal care “.

For the Codacons inflation still very high and equal to 7.9% in July achieves a “massacre” on the pockets of consumers and will have very heavy effects on the national economy with – the association calculates – a higher expenditure equal to +2,427 euros per year for the “typical” family, which reaches +3,152 euros per year for a household with two children, considering the total consumption of a family. “We are in the presence of a real national emergency that will have heavy effects on the economy and on the economic conditions of families – explains the president of the Codacons Carlo Rienzi -. The Government can no longer waste time, and must urgently intervene by immediately cutting the VAT on basic necessities such as food, whose prices in July underwent a record increase of + 10% on an annual basis, in order to allow a immediate reduction of retail price lists and allowing families to put food on the table without suffering a drain “.

FromColdiretti’s analysis emerges “an overall increase in the shopping cart equal to + 9.6% among fresh products, such as fruit and vegetables, and processed in a situation already made difficult by the increases linked to the war in Ukraine that hit companies and consumers’ tables hard “. The increase in prices triggered by the explosive mix of the increase in energy costs and crop cuts due to the climate, for Coldiretti, will cost Italian families almost 9 billion euros in 2022 for food spending alone. Fruits and vegetables this year they will cost a total of 1.97 billion more to the families of the boot – underlines Coldiretti – and precede on the podium bread, pasta and rice with an increase of 1.65 billion, and meat and cured meats for which an estimated expenditure of 1.54 billion higher than in 2021. In fourth place fruit with 0.92 billion, which precedes milk, cheese and eggs (0.78 billion), fish (0.77 billion) e oil, butter and fati (0.59 billion) which, however, is the category that in the first six months of 2022 saw prices run the most. The categories follow with smaller additional disbursements “mineral waters, soft drinks and juices”, “sugar, jams, honey, chocolate and sweets”, “coffee, tea and cocoa” And “salt, seasonings and baby food”. If prices for households run the rise in costs hits the whole hard agri-food chain starting from the countryside where – continues Coldiretti – more than 1 farm out of 10 (11%) is in such a critical situation as to lead to the cessation of activity but well about 1/3 of the national total (30%) is in any case forced at this time to work in a condition of negative income due to increase in production costs, according to Crea. In agriculture there are in fact increases in costs ranging from + 170% for fertilizers to + 90% for feed to + 129% for diesel. “It is necessary to work for supply chain agreements between agricultural and industrial companies with precise qualitative and quantitative objectives and fair prices that never fall below the production costs as required by the new law to combat unfair practices and speculation – says the president of Coldiretti Ettore Prandini -. Immediate action must be taken to contain expensive energy and production costs with immediate measures to save companies and stables and structural measures to plan for the future. In this context, it is important to open the Government to our proposal on the tax exemption of labor costs “.

Concern was also expressed by Federdistribuzione. “The shopping cart, as per our expectations, after months of growth at a rate lower than that of the general inflation index, has accelerated its course, gradually widening the gap – he comments. Carlo Alberto Buttarelli, Director of the Studies and Relations Office with the Federdistribuzione Sector -. We continue to record an increase in the production costs of consumer goods which are impacted by various negative externalities, including increases in energy goods and raw materials, in addition to the heavy effects of drought, which weigh heavily on Italian agri-food chains. Even in this moment of political transition, it is more urgent than ever to continue to support businesses and the purchasing power of families in a concrete way and with all possible actions, especially those of low-income groups with children. In recent months, the modern distribution companies, with a great sense of responsibility towards families, have managed not to offload on consumption between 2 and 3 points of inflation recorded during the purchase phase. This situation is increasingly less sustainable for businesses, as it puts their economic stability at risk. So the increase in prices is gradually being unloaded on the shopping cart, and in a period of great economic uncertainty, families will increasingly seek savings and convenience. A situation that could compromise consumption in the coming months, in particular of quality agri-food products, the flagship of the Italian supply chains of excellence “.

tlb-finance