Italy is also in the midst of inflation. Based on the data for June, inflation now reaches 8%, the highest percentage in the last 36 years.
It is clear that this large increase is mainly due to energy price increases, which exceed 42%. For this reason, Italian Prime Minister Mario Draghi insists on adopting a ceiling on the price of gas, if possible before the European Summit in October. In the meantime, food prices – always in June and on an annual basis – increased by 8.3% while air tickets saw a record 90.4% increase. Hotel rooms increased by 18.1%.
The opinions of economists differ and this causes even more uncertainty. In the newspaper Corriere della Sera, the well-known economist Lucrezia Reichlin writes today that this wave of increases will be short-lived, while in La Repubblica the former Ministry of Home Affairs. Pier Carlo Padoan argues the exact opposite.
Additional charge of 3,000 euros per year
The Italian consumer association Codacons predicts that inflation will soon reach 10% and that the annual burden for a family of four from price increases will reach 3,192 euros. The Draghi government has just decided to renew, for another three months, the special discount on electricity and gas bills for economically weaker families. “In total, we have allocated more than 45 billion euros to support businesses and households,” said the Italian technocratic prime minister. The three largest unions of the country, however, (Cgil, Cisl, Uil) request an urgent meeting with the government, as well as the adoption of new measures.
The Five Stars, which in the last period have increasingly distanced themselves from the government’s line, consider their main priority to be efficient meetings with the social partners with new, substantial support interventions. Finally, many commentators fear that after the summer holidays the consequences, for the wallet of the average Italian, will become even heavier. That is why Mario Draghi continues to request the adoption of a new European economic support plan for the member countries of the Union, as was done with the coronavirus.
Theodoros Andreadis Syngellakis, Rome.
Source: Deutsche Welle
Source: Capital
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