Italy has taken a significant step to combat rising inflation in consumer goods, including food, following discussions between the government and industry groups.
The agreement, known as the ‘anti-inflation quarter’, was activated on September 28 and will run from October through December. It is the result of a letter of intent signed earlier in September by various Fast-Moving Consumer Goods (FMCG) associations.
Italian Prime Minister Giorgia Meloni and Minister Adolfo Urso both praised the deal on social media platforms. Meloni tweeted the signing of the anti-inflation pact as an initiative against rising food prices, while Urso described it as an alliance among 32 institutions from various sectors, including government, distribution, industry, craftsmanship, cooperatives, and agriculture.
The signatory associations, representing millions of businesses, have committed to keeping the prices of essential food and non-food items, particularly those for children and consumers, under control during the October-to-December period, which includes the Christmas season.
Paolo Mascarino, President of Federalimentare, an FMCG association, expressed the importance of collaboration between institutions and the business world in protecting families’ purchasing power. He emphasized that companies in the food industry have the freedom to decide their participation in the initiative based on their commercial strategies and the impact of inflation on their costs.
The initiative aims to reduce overall inflation, which has already decreased from 11.8% in October 2022 to 5.4% in August 2023. The effort is expected to restore consumer and business confidence, revitalizing consumption and the production system.
The Italian National Institute of Statistics recently released inflation figures for September, revealing a headline rate of 5.3% on an annual basis. Prices of grocery products and unprocessed food cooled to 8.3% from 9.4% in the 12 months leading up to September, demonstrating some progress in curbing inflation.
Federalimentare encourages all businesses within the Ministry of Enterprises and Made in Italy (Mimit) to participate in the anti-inflation initiative through a dedicated website, aiming for widespread involvement and success.
