Inflation is declining but remains historically high: 2023 finishes with a price change of +5.7%, considerably below 2022 levels but still the second highest figure in the last thirty years. And the risk of prices rising again is not fully eliminated. This is the warning issued by Confesercenti, a trade association that represents Italian businesses in commerce, tourism and services, crafts, and small industry. "The slowdown in inflation from the second half of 2023 should, however, not be an episodic event; above all, there is an extinguishing of tensions on the supply side: raw material prices are slowing down, the situation in international supply chains is going back," says Confesercenti. "The energy crisis of 2022, however equivalent in size to that of 1973 , did not cause price increases or wage spirals, allowing to quickly extinguish the inflationary flare-up that had peaked at the end of 2022. However, it should be noted that the past year has been extremely challenging for consumers. In fact, core inflation rose to 5.1% in 2023 from 3.8% in 2022. The loss of energy tariff reductions, which has resulted in an additional 0.5% price increase on average in 2023 and 0.3% in December alone, weighs heavily".
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