Italian Premier Giorgia Meloni has launched a groundbreaking pact with the country’s industry to keep prices under control for essential goods, including food, personal care, and baby items. The initiative aims to help families, particularly those in financial difficulty, and could result in significant savings for consumers.
The experimental program, which runs from October 1 to December 31, involves 32 associations that have agreed to discount or maintain a ceiling on the prices of specific products during the three months. This marks a significant departure from the traditional approach to price control, where individual companies or industries take action to regulate their prices. Instead, the Italian government has brought together a wide range of industry players, including supermarket chains, small retailers, and food and medicine producers, to work together to keep prices under control.
The Assountenti consumer group has praised the project, estimating that it could lead to potential savings of four billion euros for families. However, there are many unknowns surrounding the initiative, including which specific products will be affected by the price controls. The participating shops will be required to display a sticker featuring the colors of the Italian flag, indicating their participation in the program.
Adolfo Urso (Via Adolfo Urso/Twitter)
The need for the pact is driven by the challenge of inflation, which has been a significant issue for Italy’s government. While inflation has fallen from its peak following Russia’s invasion of Ukraine, it remains a concern for the country. Italy’s economic development minister, Adolfo Urso, has stated that the country’s inflation rate has dropped below the European Union’s average, from 11.7% when Meloni took office last October to 5.4% in September.
The European Union’s statistics office will release new inflation figures on Friday, which are expected to show a continued decline in prices. In August, consumer prices in the 27-nation EU rose 5.9% from a year earlier, while prices in the 20 countries using the euro currency increased by 5.2%. While these figures are lower than the record-high 10.6% seen in October 2022, they still present a challenge for governments and policymakers to address.
The Italian government’s pact with industry represents a renewed effort to address the issue of inflation and keep prices under control. By bringing together a wide range of industry players, the government hopes to create a more sustainable and equitable solution to the problem. While there are many unknowns surrounding the exact implementation of the programme, the potential benefits for consumers are significant, and the initiative is expected to have a positive impact on families and the wider Italian economy.
