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Rates for water, garbage, transport exceed inflation - study

Consumers group says Italians paying soaring service levies

Redazione Ansa

(ANSA) - Rome, January 27 - 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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