Milan, Oct. 8 (LaPresse) – “Selling prices continued to rise across all sectors, with the trend compared with the previous survey remaining broadly stable in manufacturing and services, while being more moderate in construction,” and “companies expect further increases over the next twelve months, mainly linked to raw material prices: most companies affected by conflict-related cost increases say they have passed them on, either partially or fully, to their own prices.” The Bank of Italy reports this in its latest “Survey on Inflation and Growth Expectations,” noting that “inflation expectations remain broadly stable, with a slight reduction over the shorter-term horizons compared with the figures reported in the previous quarter.” “In the third quarter, negative assessments of the overall economic situation eased, although they remained worse than those recorded before the outbreak of the war in the Middle East. Overall demand for companies’ products or services maintained a positive trend, with weaker assessments in manufacturing and broadly stable conditions in services and construction. Sales growth was supported by foreign demand, while domestic demand weakened. The conflict and the closure of the Strait of Hormuz continued to have a limited impact on demand for companies’ products or services, while having a more significant effect on the costs of production inputs,” the Bank of Italy explains.
Bank of Italy: “Companies have passed on conflict-related cost increases to prices”
Milan, Oct. 8 (LaPresse) – “Selling prices continued to rise across all sectors, with the trend compared with the previous survey remaining broadly stable in manufacturing and services, while being more moderate in construction,” and “companies expect further increases over the next twelve months, mainly linked to raw material prices: most companies affected by conflict-related cost increases say they have passed them on, either partially or fully, to their own prices.” The Bank of Italy reports this in its latest “Survey on Inflation and Growth Expectations,” noting that “inflation expectations remain broadly stable, with a slight reduction over the shorter-term horizons compared with the figures reported in the previous quarter.” “In the third quarter, negative assessments of the overall economic situation eased, although they remained worse than those recorded before the outbreak of the war in the Middle East. Overall demand for companies’ products or services maintained a positive trend, with weaker assessments in manufacturing and broadly stable conditions in services and construction. Sales growth was supported by foreign demand, while domestic demand weakened. The conflict and the closure of the Strait of Hormuz continued to have a limited impact on demand for companies’ products or services, while having a more significant effect on the costs of production inputs,” the Bank of Italy explains.