Italy’s Inflation Rate Expected to Fall to 3.4% by Year-End, Says Industry Minister

Italy’s industry minister, Adolfo Urso, has announced that the country’s inflation rate could drop to 3.4% by the end of this year. This projection is significantly lower than the current inflation level of over 5%. The government has implemented measures to curb the prices of essential staple items between October and December, aiming to alleviate the burden on consumers.

Prime Minister Giorgia Meloni has been facing challenges due to persistent inflation, as companies have been accused of passing on more than the direct increase in production costs to customers. Minister Urso expressed satisfaction if inflation could be reduced to 3.4% by December 31st.

To combat inflation, the government recently reached an agreement with distributors’ associations to intensify efforts against rising prices. Producers have also been encouraged to cooperate, although individual companies retain the final decision on binding commitments.

Preliminary data revealed that Italy’s EU-harmonized consumer prices rose by 1.7% month-on-month in September, with annual inflation accelerating to 5.7% from 5.5% in August. The main domestic price index showed a 0.2% increase from the previous month and a 5.3% annual rise in September.

Minister Urso emphasized the government’s aim to strike a significant blow to inflation while simultaneously boosting consumption. The Treasury’s Document of Economy and Finance (DEF) predicts average inflation, measured using the consumption deflator, to be 5.6% this year and 2.4% in 2024.

As part of the “anti-inflation pact,” participating supermarket chains and small retailers will define a basket of food and non-food staples to which lowered prices will apply in the last quarter of this year. Basic necessities, including childcare and personal care products, will also be included. Notable supporters of this campaign include Italian chain CONAD, French retailer Carrefour, and confectionery maker Ferrero.

While France announced a similar plan in August, it faced challenges in obtaining support from major players such as Unilever, Nestle, and PepsiCo. Italy’s concerted efforts to combat inflation demonstrate the government’s commitment to addressing the concerns of consumers and promoting economic stability.

In conclusion, Italy’s industry minister’s optimistic projection of a decline in inflation to 3.4% by year-end, coupled with the government’s anti-inflation measures, aims to provide relief to consumers and stimulate economic growth in the country.