Price freeze in May due to the coronavirus emergency. According to preliminary Eurostat estimates in the euro zone the price index dropped to 0.1% from 0.3% in April, due to the freezing of economic activity for the pandemic, while in Italy the index the national consumer price index for the entire community (Nic) gross of tobacco, recorded by Istat, recorded a decrease of 0.1 % on both a monthly and annual basis. The trend variation was zero in the previous month. The price trend was affected by the 12% drop in energy prices in Europe (-9.7% in April), while the price of food products continues to rise, rising by 3.3%, after + 3.6% in April.
In particular, as regards Italy, core inflation or core inflation, ie net of energy goods and fresh food, instead recorded an increase, with the price index from + 0.8% to +0 , 9%, while the index net of energy goods only goes from + 1% to + 1.1%. The shopping cart is growing slightly. In Istat’s preliminary estimates, the prices of food, home and personal care products rose from + 2.5% to + 2.6%, while those of products with high purchasing frequency recorded a tendential change ( from + 0.8% in April). Inflation acquired for 2020 equal to zero for the general index and + 0.7% for the underlying component.
Probably the new data push the European Central Bank, which announces new monetary policy decisions on Thursday 7 June, to intervene further increased the firepower to support the European economy. Despite the ruling of the Constitutional Court of Karlsruhe, price stability, close to but below 2%, is at the heart of the ECB’s mandate.