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Exorbitant power causes record inflation, counter-trend phone services

Ongoing energy crisis fueled by conflict between Russia and Ukraine leads to October inflation At levels not seen in 40 years. In the basket considered by the ISTAT to estimate the national index, in fact, i The costs related to electricity and gas have a greater impact on the trend in consumer prices: Inflation rises in October11.9% On a trend basis (i.e. compared to October 2021), excluding energy commodities, the increase was “only” +5.8%. Compared to September, inflation is up 3.5%, and earned inflation for 2022 is +8%.

Directional blowing (year on year) of energy materials

Energy Origins:

  • October 2020: -9.5%
  • October 2021: +24.9%
  • September 2022: +44.5%
  • October 2022: +73.2%

The increase affects both regulated and unregulated energy commodities:

  • Regulated Energy Commodities:

    • October 2020: -9.6%
    • October 2021: +37%
    • September 2022: +47.7%
      • Protected Electricity Market: +57.3%
      • City market for protected gas and natural gas: +43%
    • October 2022: +62.1%
      • Protected Electricity Market: 91.5%
      • City market for protected gas and natural gas: +43%
  • Unregulated Energy Commodities:
    • October 2020: -9.4
    • October 2021: +15%
    • September 2022: +41.2%
    • October 2022: +79.5%

Simultaneous inflation (m/m)

Regulated Energy Commodities:

  • October 2020: +7.6%
  • October 2021: +12.6%
  • October 2022: +28.4%
    • Protected Electricity Market: 51.9%
    • Al-Madina Gas and Natural Gas Protected Market: +0% *

Unregulated Energy Assets:

  • October 2021: +1%
  • October 2022: +28.3%

* As the new ARERA method is estimated to update from October 2022 for gas tariffs in the protected market. “On the basis of the new calculation method, the value of the gas price component to cover natural gas purchase costs applicable to customers still under protection is updated on a monthly basis but is published in the first few days of the month following the reference month.



Rationale

The rise in energy prices is mainly due to Impressive growth in electricity prices in the free market:

  • September 2022: +136.7% YoY
  • October 2022: + 329% every year

Compared to September, prices rose 62.7% in October. Keep in mind that in October 2021 prices are down 10.2% compared to the previous month. Urban gas and natural gas are seeing a 63.9% increase in free market prices.

voice counter


October 2022 CPI shows how only one item enters Opposite trend with respect to inflationary increase: Communications. This expense category includes me telephone serviceand, therefore, the rates of the operators and the costs that Italian users incur each month to get minutes, SMS and gigabytes available for surfing the Internet.

Well, if the (annual) trend variance for the whole basket is +11.9%, then the variance related to connections is -2.5%, the only one among those considered by ISTAT that reports deflation or decline in prices. And this is not an isolated case, as we take the October 2021 statistical data in hand, we can see how the trend was already underway, with the price contracting 2% year over year.


Lately, one has rebooted vigorously A battle between phone operators over gigabyte sound at affordable pricesHowever, the race returned to the bottom after a period in which the market found a kind of balance it was struggling with to move. The emergence of Iliad and a series of virtual operators has revived the competition, and we see this clearly especially in these days when there is no shortage of new offers at almost bargain prices (see Kena and Very).

Now it will be interesting to understand what percentage of the increase in energy costs the phone operators will get to the end consumer: to contain spending items, for example, Eliade recently announced a new energy plan that provides for night shutdowns for some. The frequencies are then ready to be automatically reactivated when needed. In this case, the contacts save in energy between 5 and 10%.

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