(Finance) – In May, according to Istat, sales in retail value rose by 0.7% compared to the previous month and by 3% on an annual basis. And consumer associations arise. “The data on retail sales released today by Istat demonstrate once again the devastating impact of high prices and inflation on Italian spending, with families drastically changing their habits, buying less and less but spending more and more. Also in May, sales recorded yet another vertical collapse in volume, with a contraction on an annual basis of -4.7% against an increase in value of 3%.This means that, net of inflation and considering expenditure for household consumption, purchases fall in volume for a total of 35.5 billion euros per year, equal to an average of -1,375 euros on an annual basis per family”. It is the picture traced by Codacons in the light a data on retail sales released today by Istat.
“Prices still at very high levels for primary goods such as food and shopping trolleys affect retail sales and the habits of Italians, who flock en masse to the food discount stores, establishments that mark a record increase in sales of +11% in May – comments the president of Codacons Carlo Rienzi –. The Government must intervene urgently by adopting measures aimed at calming price lists, protecting the purchasing power of Italians and saving household budgets”.
A scenario that also for Confcommerce it is characterized by an uncertain picture and by consumption that remains weak. Data, those released by Istat – notes Confcommercio – not positive “if we look at the annual comparison in terms of volumes, which however must also be read in the light of the deterioration that has been observed for some months on this front: in fact, after four months the volume sales have once again shown a weakly positive cyclical change, an element that could herald the beginning of a less negative period, also favored by the return of inflationary dynamics”. For food – continues Confcommercio – especially those sold by smaller companies, “however, demand still shows significant falls in terms of volumes. Similarly for clothing and footwear, which was also affected by an unfavorable weather season, consumption is confirmed to be clearly downsizing. The overall picture – Confcommercio concludes – therefore remains difficult to interpret and, for now, lacking a clear direction. The prevailing idea is that 2023, after a favorable first quarter, will proceed to very slow rhythms, always on the verge of a moderate, but painful, risk of recession.If, in the absence of positive impulses on the side of industrial production, the driving force deriving from tourism and services were to weaken, pending full implementation of the PNRR, the labor market could also be seriously affected”.
For the president of the National Consumer Union, Massimiliano Dona, the decline in consumption is “an optical effect due to inflation”. “If, in fact – continues Dona – the rise due to inflation is discounted, Italians are always forced to tighten their belts and go on a forced diet. Food sales in volume, in fact, drop both on April 2023, -0, 5%, both on May 2022, -3.8%, a reduction, the tendential one, which has now lasted uninterruptedly since January 2022, a chronic slimming cure, harmful for the country. In order to be able to eat, families are forced to go to discount stores, abandoning the brands they were used to”. According to the association study, the food sales by volume down 6.3% on May 2021 and by 6.5% even on May 2020, the month of pandemic and lockdown. “Translating the drop in volumes consumed on May 2022 into euros, food expenses for an average family – concludes Dona – drop on an annual basis by 214 euros at 2021 prices, non-food expenses by 837 euros, for a total of 1051 euros. A couple with 2 children buys 292 euros less of food and 1154 euros less of non-food goods, for a total figure of 1446 euros”.
To detect a drastic decline for the food sector is also Absolute users which renews request to the Government a basket of goods at controlled prices to protect the incomes of the less well-off and support spending. “Net of inflation, spending on food and drink drops by 292 euros per year per family. Immediately basket at controlled prices to support consumption The data on retail sales for May demonstrate once again how the price emergency is profoundly changing the habits of Italian families – says Assoutenti – The most alarming signal coming from trade is that relating to food, a sector which in terms of volume records a drastic drop in sales of -3.8% on an annual basis, against a rising expenditure for food and beverages by more than double (+7.7%).This means that, net of the effects of inflation, a family with two children cuts food spending by an average of 292 euros per year.The high prices weigh on trade and consumption and very high inflation on primary goods.This is why we ask the Government to study together with consumer associations, producers, large-scale distribution and local authorities, a basket of products to be sold in the area at controlled prices, in order to help not only families grappling with their daily shopping, but also the trade sector”.
Measures to contain inflation are needed against declining consumption for the CNA. “Instead of restarting, consumption also retreated in May, according to the Istat estimates on retail sales. While inflation empties the wallets of Italians” affirms the CNA. “In a nutshell, – continues the CNA – it means that Italian families, grappling with inflation, are forced to spend more to fill the classic trolley less. The situation is no better in Europe where Eurostat (the European equivalent of Istat) has detected a drop in consumption on an annual basis equal to 2.9%.Therefore, the need to intervene rapidly on inflation both in Italy and in Europe is increasingly evident – underlines the CNA – by seeking measures to contain prices , which decrease too slowly, also to avoid the triggering of the perverse spiral of high prices and more expensive borrowing costs, lethal for families grappling with mortgages and for businesses forced to finance themselves”.