The inflation rate of 0.4% recorded in January is a very worrying indicator for the economy. According to the former director of Instat, Ines Nurja, such problematic deflationary values indicate a deep consumption crisis, and a population on the verge of survival.
According to her, a further contraction of consumption is expected in the coming months, influenced by the austerity measures taken by the government.
“I think now it is not about basic needs, now it is just survival. If we had basic needs, we would have food prices similar to previous years. But on the contrary, food consumption has declined. Such a reduction in consumption indicates that there will be a large reduction in both wholesale and retail trade. It means that the production itself in the first quarter will see a decrease. These austerity measures will lead to further business disruption, especially in trade and services. It means that the consumption will decrease. ” said Ines Nurja, assessing that direct assistance to businesses as a necessity.
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