Consumer groups ready to stage another spending stike

| Tue, 02/26/2008 - 04:10

Italian consumer rights organizations on Monday threatened to stage a new spending strike to protest what they see as runaway inflation for goods of prime necessity.

''We intend to stage a street demonstration and to organize a new spending strike against a political class which today is asking for the support of those same voters who they've been fleecing until now,'' said Elio Lannutti, head of the Adusbef consumer group.

Last September consumer groups staged a successful 'pasta strike' against price hikes for pasta, milk and bread.

Italians were asked to forego all food shopping for one day, but those unable to follow such a strict boycott could opt for shunning pasta, the symbol of the protest.

Organizers said the initiative was a resounding success and that by the end of the day, 67% of shoppers they quizzed outside supermarkets in six sample cities had refused to buy pasta.

The same day a protest was organized outside parliament where the consumer groups handed out free pasta, milk and pizza.

The strike had the backing of Italy's leading farmers' unions which said that the price hikes for food did not originate on the farm but between the farm and the table.

National statistics bureau Istat on Friday reported that prices for food, fuel and other daily family necessities soared 4.8% this month, the biggest leap in 11 years and almost twice the official inflation rate.

Istat also admitted that the inflation rate of these high-frequency buys has been ''systematically higher'' than the overall rate since 2002.

Codacons, one of the main consumer-protection lobbies, said the ''admission'' that the cost of everyday purchases rose much more sharply than the overall inflation rate was ''a small step towards the truth''.

However, it claimed that ''the 4.8% rate is still underestimated and a long way from the reality of everyday hikes that are hitting Italian consumers''.

The overall inflation rate in January was 2.9%, up from 2.6% in December and its highest in five years.

In response to mounting protests over inflation, the Italian government appointed a special ombudsman to serve as watchdog over for consumer prices.

Antonio Lirosi, director general for market and consumer protection at the industry ministry, was named to the post which will see him work in collaboration with chambers of commerce, the tax police and the antitrust authorities to monitor domestic prices and be on the lookout for unjustified hikes.

Topic: