While policy makers are fretting
about flat inflation in Italy, the cost of services like water
and garbage collection have soared, according to a report
Tuesday by consumer association Federconsumatori.
It said that in the decade between 2004 and 2014, rates for
water services jumped by 80.1%, while the cost of trash pickup
rose by 70.3% - two examples of fees that show no sign of
diminishing, said the group.
And they are hitting households hard at a time when many
families have trouble making ends meet.
Over the previous decade, it said electricity costs rose by
an average of 48.4%, rail transport by 46.2%, highway tolls
jumped by 46.5% and gas climbed by 42.9%.
The only decrease in the cost of utilities came in
telephone services, which fell by 15.7% likely due to the
prevalence of cellphones.
In contrast, the annual rate of inflation in Italy over
that period averaged around 2%, rising as high as 4% during
2008-2009.
Meanwhile, a second analysts by the Research Center of
consumers group looked at the rising cost of services before and
after the economic crisis that began in 2008 and found that hard
times had no impact on rates.
"Despite the crisis and the simultaneous decline in the
purchasing power of households, some rates (water, waste and
transport) have increased in a manner much heavier than the
pre-crisis," said Federconsumatori.
It blamed ineffective efforts to bring competition into
services, a lack of vigilance in prices levels, and pressure for
high returns.
And with recently announced cuts by Premier Matteo Renzi's
government to local authorities, fees will continue to rise,
said Federconsumatori.
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