Inflation: Expensive vacations, on flights increase 90.4% – Economy

Inflation also affects holidays. Istat data for June shows an increase in airfares that almost doubled compared to 2021 and represents +90.4%. Compared to the previous month, the increase was 23.8%. The increases, with soaring fuel prices, also relate to transportation services in general (+7.2% per year; +2% since May). It is also more expensive to sleep in a hotel, bed and breakfast, or village. Prices for accommodation services in fact indicate + 18.1% per annum and + 5.8% on a monthly basis.

“In June, inflation accelerated again, rising to a level (8%) not recorded since January 1986, when it was equal to 8.2%,” according to preliminary statistics. In May it was 6.8%. The consumer price index rose on a monthly basis by 1.2%.
“Inflationary tensions continue to spread from energy commodities”, whose growth moved from +42.6% in May to +48.7% and in particular in unregulated energy such as fuel (from +32.9% to +39,9%). Structured energy continues to post very high but stable growth at +64.3%.

“The acceleration of food prices, both processed and unprocessed, is driving the growth of so-called cart” at +8.3%According to preliminary statistics. Also in this case the highest increase is in January 1986, when it was +8.6%. For food, home and personal care prices that make up the cart, in May, the increase was 6.7%.
Consumer prices are net energy and fresh food which is the primary ingredient mark + 3.8% (it was +3.2% in May) and those net energy goods alone are +4.2% (from +3.6%). These increases have not been seen since August 1996 and June 1996 respectively, and earned inflation for 2022 is equal to +6.4% for the general index and +2.9% for the core component.

Inflation in the eurozone continues to break records: in June it reached 8.6%, (compared to 8.1 in May), a level not recorded since the establishment of the Economic and Monetary Union. Today, Eurostat released a quick estimate of the consumer price trend. The main component that affected the growth of average inflation was the energy sector, a sector whose year-on-year rise in June was 41.9% compared to 39.1% in May.

European stock markets remain high after inflation data in the euro areaA, which rose in June to a new record high of 8.6%, above economists’ expectations, with a price rush mounting pressure on the European Central Bank to accelerate monetary policy tightening. Milan led 0.5%, London 0.2%, Paris 0.5% and Frankfurt 0.3%.

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