Rome [Italy], August 5: The Italian government on Friday signed a memorandum of understanding with business representatives to take steps in the fourth quarter of this year to temporarily fix prices for key consumer products in an effort to reduce inflation.
According to the terms of the memorandum, specific consumer products in the "basket of goods" used to calculate the inflation rate will be targeted.
"Focusing on the regulated basket of goods we are convinced we can deliver a definitive blow to inflation by bringing it back to natural levels," Adolfo Urso, Italian minister for enterprise and made in Italy, said in a statement.
Inflation in Italy started to grow 18 months ago and it reached a record high level of 11.8 percent in October and November 2022, the highest rates in Italy since the adoption of the euro currency 24 years ago.
The increase has been largely driven by high energy prices, with a knock-on effect seen in other sectors through increasing production and transport costs.
While prices have slightly decreased since November, the inflation rate has remained stubbornly above historical levels. In July, preliminary data showed a 6.0 percent year-on-year increase in inflation, only slightly down from a 6.4 percent growth expected for June.
According to the Organization for Economic Cooperation and Development (OECD), the final June figure is expected to be 1.2 points higher than the OECD average for that month, and both the June and July figures are way above the formal European Central Bank target rate of 2.0-percent inflation in the eurozone.
The list of goods to be included in the inflation reduction action plan will be released by Sept. 10, with the scheme kicking off in October.
Basic food, pharmaceutical, and non-food products are expected to feature on the list. The scheme will include different measures, such as the application of fixed prices, promotional activities, and price discounts, the minister said.
Source: Xinhua