Inflation falls, but food prices remain high. The surveys by Istat (National Institute of Statistics on consumer prices in Italy in May 2020.
Consumer prices, record low
The fall of inflation recorded in Italy in May 2020 reaches the lowest level in the last 4 years (October 2016). -0.2%, monthly and annual basis.
The decline of the general consumer price index is attributed to the drastic drop in oil prices and thus unregulated energy goods (motor vehicle fuels and bottled gas, from -7.6% to /12.2%). Excluding this item, inflation actually rises by 1%, as does its core component (which excludes unprocessed foods and energy goods, +0.8%).
Food prices still rising
Food prices in Italy, like those of household and personal care products, are however still rising (+2.4% in May, just a tenth of a point less than in April). Contrary to the general consumer price index trend, but also relative to the food price drop recorded by FAO globally.
The price increases have hit all staple foods and long-lasting products used for stocks. Also due to the surge in domestic food consumption caused by the elimination of meals out during lockdown.
According to a Coldiretti study the increases are as follows:
– fruit (+7.9%),
– vegetables (+5.3%),
– frozen fish (+5%),
– cured meats (+3.7%),
– milk and pasta (+3.5%),
– meat (+2.7%).
– cheeses (+2.4%),
– mineral water (2.3%)
– sugar (+2.2%),
– butter (+2.1%).
From the fields to the shopping cart
The abnormal living conditions imposed by the new coronavirus has quietly hit agricultural production, encouraging downward speculation in fields and stables with cuts to payments made to farmers and breeders, from vegetables to meat and milk. ‘Prices recognized to producers in many sectors no longer even cover costs and put the national agri-food system at risk‘, denounces Coldiretti, according to which almost 4 out of 10 farms (37%) report a sharp decline in activity.
Worsening the scenario the spring climate contributed. First the frost that damaged the blossoms, then the scorching heat and drought, finally wind and hail storms. The result is a collapse in crops, from peaches to nectarines (-28%), apricots (-58%) to cherries. With heavy damage to vineyards and fields of vegetables, corn, tomato, tobacco.
It is legitimate to expect that the Antitrust Authority (Competition and Market Authority, AGCM) initiates investigations to verify the existence of any unfair commercial practices, in violation of article 62 of law 27/12, or other practices distorting competition.
Professional journalist since January 1995, has worked for newspapers (Il Messaggero, Paese Sera, La Stampa) and magazines (NumeroUno, Il Salvagente). Author of journalistic investigations on food, she published the book 'Reading labels to know what we eat'.
