According to preliminary estimates, in April 2024 the national consumer price index for the entire community (NIC), gross of tobacco, increases by 0.2% on a monthly basis and by 0.9% on an annual basis (from +1.2% in the previous month).
The slight slowdown in the inflation rate is due to the widening on a trend basis of the decline in the prices of non-regulated energy goods (from -10.3% to -13.9%) and to the deceleration in the prices of transport-related services ( from +4.5% to +2.9%), Various Services (from +2.3% to +1.8%), Non-durable Goods (from +2.0% to +1.5%) and unprocessed food (from +2.6% to +2.2%); on the other hand, there was an acceleration in the prices of tobacco (from +1.9% to +3.3%), recreational, cultural and personal care services (from +3.2% to +3.8 %) and regulated energy goods (with trend reversal from -13.8% to +0.8%).
In April, “underlying inflation”, net of energy and fresh food, decelerated from +2.3% to +2.2% and that net of energy goods alone from +2.4% to + 2.2%.
The trend dynamics of the prices of goods recorded a slightly larger decline (from -0.2% to -0.6%) and that of services was slightly decelerating (from +3.0% to +2.9%), resulting in an increase in the inflationary differential between the services and goods sectors (+3.5 percentage points, from +3.2 in March).
Food pricesfor home and personal care slow down on a trend basis (from +2.6% to +2.4%)while those of high purchase frequency products accelerate (from +2.5% in March to +2.7%).
The cyclical increase in the general index mostly reflects the growth in prices of recreational, cultural and personal care services (+1.6%), tobacco products (+1.3%), related services to transport (+0.8%) and processed food goods (+0.5%). The effects of these increases were only partially offset by the decrease in the prices of regulated (-8.2%) and non-regulated (-1.8%) energy goods.
The inflation acquired for 2024 is equal to +0.6% for the general index and +1.7% for the underlying component.
Based on preliminary estimates, the harmonized index of consumer prices (HICP) increases by 0.6% on a monthly basis, due to the end of the seasonal sales, which the NIC does not take into account, which partly continued into March, and by 1.0% on an annual basis (from +1.2% in the previous month).
Istat’s comment
In April, according to preliminary estimates, inflation will fall again, reaching 0.9%. The slight deceleration is mostly affected by the trend in prices of non-regulated energy goods (-13.9% from -10.3% in March) and transport-related services (+2.9% from +4.5%). Food prices also slowed slightly (+2.6% from +2.7%). On the other hand, the prices of regulated energy goods show a strong trend recovery (+0.8% from -13.8%), despite the economic decline (-8.2%). The dynamics of the “shopping cart” prices on an annual basis also continued its decline in April (+2.4% from +2.6%), while underlying inflation stood at +2.2% (from +2.3%).
Falling inflation and weak consumption: Modern Distribution’s commitment to supporting families continues
The data released by Istat relating to consumer prices for the month of April show, compared to the previous month, a slowing general inflation index with a +0.9% on an annual basis, while the shopping cart marks a further decline with a +2.4% on a trend basis.
Also in April there was a cooling in price growth, in particular in the shopping cart. In an economic situation still characterized by weak consumption and uncertaintyalso due to the impact of the various critical issues linked to the geopolitical scenario, with the hope that there will be no effects on the prices of raw materials in the near future, The commitment of Modern Distribution companies to supporting the purchasing power of families continues.
In the coming months it will be important to recover a climate of confidence that can help restore impetus to consumption, which is fundamental both for the stability of the national economy and for the growth of businesses. (am)
Source: Istat.it and Federdistribuzione
