10157 Good News For Once

Wheat prices dropped sharply from May to July

It seems the harvest of wheat this year has been a good one. According to ANSA

Rome, August 7 - There is no justification for the high prices for bread and pasta based on the current trend in wheat prices, according to the government's special watchdog on consumer prices.

''Retail prices rose from October to February due to a jump in the cost of raw materials and thus now there should be an immediate reversal in this trend given that the cost has dropped,'' observed Antonio Lirosi.

''Prices for wheat have been falling for the past three weeks and this year's harvest has been good,'' he added.

Speaking before a meeting with representatives from the flour transformation sector - makers of pasta, bread and baked goods - Lirosi said ''we will ask everyone on every level to do their part to ensure that the drop in the cost of raw materials trickles down to the consumer''.

''On our part, we will monitor prices in September to verify whether retail prices are in line with the trend on the international commodities market,'' he added.

According to the farmowners' union Confagricoltura, wheat prices fell more than 14% from May to June and in July fell a further 8.4% to reach the same level as in September of last year.

Soaring costs for pasta and bread have contributed to push Italy's inflation rate over 4% to its highest since July 1996.

Pasta prices last month were up 25% on July 2007 - the third straight month they rose by more than 20%.

Bread cost 13% more, the same rise as May and June