Inflation rises slightly again in March. According to preliminary estimates fromIstatthe National Consumer Price Index for the entire community (NIC), excluding tobacco, is increased by 0.1% compared to the previous month and by 1.3% compared to the previous year, compared to +0.8% recorded in the previous month. Furthermore, underlying inflation, which excludes energy and fresh food, rose from +2.3% to +2.4%, while that which takes into account only energy fell from +2.6% to + 2.5%.
Food prices
Istat records a slowdown in annual growth in food prices (passing from +3.8% to +3.1%; with an increase of 0.2% compared to February), due to the deceleration of unprocessed food prices (from +4.4% to +2.6%; with a decrease of 0.7% on a monthly basis), while those of processed foods remain stable (+3.4%), despite the increase of 0.7% compared to the previous month. As regards unprocessed products, a trend reversal is observed in the prices of fresh or chilled vegetables other than potatoes (from +4.2% to -0.6%; with a decrease of 3.8% compared to the month previous) and a slowdown in the prices of fresh and chilled fruit (from +11.1% to +7.4%; with a decrease of 0.2% on a monthly basis).
The institute explains that the increase in the general index is mainly attributable to growth in prices in transport-related services, processed food and regulated energy goods (+0.7% both), and non-durable goods (+0.4%). However, the effects of these increases were only partially offset by decreases in the prices of unregulated energy goods (-1.9%) and unprocessed food goods (-0.7%).
In fact, as the Easter holidays approach, there is a significant increase in air freight prices. In particular, flight prices recorded an increase of 17.6% in just one month. Among the different segments, international flights show a notable increase of 20%, ranking first for monthly increases. Domestic flights follow in second place, with an increase of 8%.
Recovery of energy goods, transport prices increase
The trend in prices of goods mainly reflects that of energy goodswhich despite the decline recorded in March (-1.7%), show a clear recovery on an annual basis (from -17.3% in February to -10.8%). This reduction in deflationary pressures involves both the unregulated component (which went from -17.2% to -10.3%; with a decrease of 1.9% on a monthly basis) and the regulated one (which went from -18.4% at -13.8%; with a monthly increase of 0.7%).
In detail, among unregulated energy sources, the reduction is reduced decrease in electricity prices in the free market (from -40.6% to -22.5%; with a reduction of 5.3% compared to February), city gas and natural gas in the free market (from -32.3% to -24.9 %; with a decrease of 4.8% on a monthly basis), of diesel for transport vehicles (from -2.8% to -0.1%; with a decrease of 0.3% compared to the previous month) and of petrol (which reversed the trend from -1.2% to +0.2%), influenced by upward pressure on a monthly basis (+0.9%). In the regulated sector, we observe a marked acceleration of city gas prices and natural gas in the protected market (from +28.6% to +51.0%; with an increase of 1.2% on a monthly basis), while electricity prices in the protected market remain stable at -42.7% (without changes on a monthly basis).
National Consumers Union: “Easter Sting!”
Bad news for theNational Consumers Union, who in a note states: “Easter Sting! As always during the holidays there are those who happily speculate on people’s holidays. International holiday packages also increase in February by 3.6%, hotels, motels and guesthouses by 1.7%. Even the trend data are shocking: national flights show a +19.2% compared to last year (in 2nd place in the monthly top ten after olive oil with +45.9%), national holiday packages cost 8.2% more, rail passenger transport 8%, international flights 7.3%, hotels and motels 6.7%. In short, it can’t get any worse than this!”
Furthermore, Dona also points out all the increases for families: “For a couple with two children, inflation at +1.3% means, despite the savings on housing and electricity equal to 318 euros, a increase in the cost of living of 309 euros on an annual basis, of which 257 euros are needed only to cover the 3.2% increase in food and drink prices. For a couple with 1 child, the additional annual expense is 259 euros, of which 233 euros more are needed for eating and drinking. For an average family it is 185 euros for food and non-alcoholic drinks. The record goes to large families with more than 3 children with 339 euros, +305 just to feed and quench their thirst” concludes Dona.
