According to consumer associations, this will cost a lot to raise prices for each family. In the Eurozone, the cost of living exceeded 4 percent in October. The fear is that the hikes could slow down the economic recovery
The rise in prices could cost 900 euros a year per family. To do the first accounts are the consumer associations who have calculated how much the price increases would weigh on average on the Italians, underlining that more than a third of this greater outlay is due to the increase in energy.
It’s raw material to drive inflation around the world: their cost, especially that of gas, is mainly due to the economic recovery, accelerating after the restrictions due to the health emergency. In practice, industry and services have broken out at full speed and prices have gone up.
Mr. Rossi is well aware of this, and in recent months he has seen the invoices of the bills, however, increased less than expected after government interventions, while so far the effects on food and other basic necessities have been more contained.
The rush of the economy, along with some international tensions, however, has created bottlenecks, that is, difficulties in procurement, also inflaming the prices of other goods, from microchips to wheat, to name a few.
The result is that the cost of living in our country reached levels in October that had not been seen for nine years (+ 3%). AND high inflation affects all of Europe: in Germany it is above 4 per cent; in Spain over 5 and, outside the Eurozone, gallops in the United Kingdom, United States, Japan and China.
In addition to the repercussions on our pockets, what is worrying is that high prices can discourage purchases and investments, and therefore, put a brake on recovery.
Fears expressed by the European Central Bank in its latest Report on Financial Stability even if the Eurotower does not seem willing to raise interest rates (at 0%), thus keeping the cost of money cheap throughout the next year. This means that, for example, there will be no shocks for those who want to apply for a mortgage or a loan but a cooling of the cost of living is not around the corner: it should still last many months.