ROME – The March inflation figure does not represent a significant deviation from the path of progressive decline in prices, confirming that in Italy and the euro area the main threat is not the dynamics of inflation but economic stagnation. This is what CNA underlines when commenting on Istat's preliminary estimates of inflation in March.
The level of interest rates after nine consecutive increases indicates a particularly restrictive monetary policy. It is more urgent than ever for the ECB to start a rapid and robust rate reduction process and for the Italian banking system to adapt in perfect harmony and loosen the conditions for the provision of credit to businesses and families.
Lowering the cost of money is a necessity to boost the recovery of investments. The recent decree on the Pnrr allocates 6.3 billion for investments in digitalisation and to support the self-production of energy from renewable sources. Reducing the cost of financing means accelerating the spending of companies which in a short time can activate investments of close to 20 billion, with clear benefits: an important contribution to economic growth, innovation and the reduction of energy costs which have skyrocketed inflation.
