INFLATION UP IN OCTOBER, RETAILERS-CONSUMERS DIFFER ON RISE
INFLATION UP IN OCTOBER, RETAILERS-CONSUMERS DIFFER ON RISE
(ANSA) - Rome, October 30 - Italy's year-on-year inflation rate rose for the third month in a row in October after leveling out at zero in July, national statistics bureau Istat reported on Friday.
Compared to October 2008, Istat said, prices rose 0.3%, up from 0.2% in September, while the consumer price index in one month inched up 0.1%, falling 0.2% in September over August.
Should current trends continue for the rest of the year, Istat added, Italy would have an annual inflation rate of 0.7% for 2009.
Despite a surge in the latter part of the month, prices at the pumps for motorists fell 2.78% over the previous month and 9% over October 2008.
Overall prices for fuels were down 1.3% for the month and 11.2% for the year.
Helping to push inflation up this past month was a 1% hike in prices in the education sector over September, which drove the year-on-year increase to 2.4%.
University costs climbed a steep 3.4% compared to both this September and last October.
Clothes prices rose 0.4% over September and 1.2% over October 2008.
Prices for food in October were up 0.1% for the month and 0.7% for the year, with bread and flour products rising 0.6% over September and 0.3% over October 2008.
Transport sector prices as a whole fell 0.3% over September but rose 2.2% for the year with rail prices rising 0.1% over September and 5.3% over October of last year, while air transport prices were up 1.3% for the month but sank 14.5% for the year.
The Istat report drew different reactions from retailers, who saw the inflation rise as 'normal', and consumer groups, who voiced their alarm.
''The inflation rise was decidedly moderate with short-term increases essentially linked to seasonal factors, as was the case for education, clothing and fruits and vegetables,'' observed the national retailers association Confcommercio.
This view was echoed by the retail services association Confesercenti which added ''although this has been the third monthly rise in a row there is absolutely no cause for alarm. In fact, the good news is that the threat of deflation has abated''.
''Deflation would not have benefited anyone given that it would have had a negative effect on the real economy with businesses closing, production dropping and, most of all, people getting laid off,'' Confesercenti added.
The consumers group Codacons was of a different opinion and stressed that ''the most alarming aspect of the rise in inflation is that it occurred at the same time as fuel prices were falling. What's going to happen in November when we are going to feel the effects of the recent surge in fuel prices?''.
''Another bad sign was the rise in food prices, after a slight dip in September, which will mean that households will be spending some 333 euros more for food this year than they did in 2008,'' Codacons added.
According to another consumer association, Federconsumatori, this latest rise in inflation ''makes it even more important for action to be taken to boost family purchasing power. Rather than talk about cutting corporate tax, the government should be finding ways to help families living on fixed incomes and the unemployed''.
