Inflation, CGIL: “It’s a record break and with a recession at the door”

Fracassi: “2023 will be a crisis. Raising wages to boost domestic demand and break the profit-price spiral”

“Istat estimates confirm a record year for inflationcorresponding to a strong risk of recession at the gates”. This is what the deputy general secretary of the CGIL Gianna Fracassi affirms in a note. , in particular, from energy raw materials. In Italy, the race for prices does not seem to be slowing down and, indeed, we must expect a 2023 of crisis and still high inflation”.

“The problem – explains Fracassi – lies in our country’s productive economic model, which competes on costs and bets on exports, in turn importing a great deal, including inflation. Wages need to be raised – supports – and, in general, gross and net income from work, to boost domestic demand and drive out imported inflation by safeguarding purchasing power and thus preventing depressive spirals”.

For Fracassi “it is also necessary to stop the speculation that transfers and multiplies the higher costs of companies on the shopping cart, bills and services. Greater control over prices and profits is needed, especially in some sectors, so that the new cost increases are not systematically passed on to work and people, who have so far taken charge of maintaining the system and continue to pay the highest prices, poverty and inequalities. There is currently no wage-price spiral, but one profit-price spiral, which must be broken. To reverse the trend it is then necessary to stabilize the economy starting from public demand and from a greater economic weight of the state (central, certainly not differentiated), therefore through the promotion of employment, a fair and progressive tax system, new welfare and new rights , especially for young people and women, who remain the most exposed subjects and instead are the very ones on whom to re-found a new development model, in Italy as in Europe”, concludes the trade unionist.