In the Lombard capital, the trend inflation has exceeded 8%, the highest since 1994. The indicator of restaurants: if the bill rises, the bill rises proportionally. Thus the price increases are passed on to the consumer
What would he think Federico Caffè the rise in coffee prices in Milan? The economist from Pistoia, teacher of a generation of leaders like Mario Draghiwrote that theinflationfrom a social point of view, it can be described as the ability of some groups to pass the price increases onto others. Fixed income thus finds itself between the anvil of costs and the hammer of a salary that loses real purchasing power. We live it every day. And what is happening elsewhere like in Milan, for example with rentals and restaurants. In those extra cents of espresso (which become tens of euro of starred) we find all the tensions over gas, Putin’s war on Ukraine, fear of bills, cold, pessimism and economic prospects for the winter . With a caveat: Milan was and is the most expensive city in Italy and one of the most expensive cities in Europe. He has passed Munich. He makes a tug-of-war with Paris and London, without losing right away. Here trend inflation rose over 8 per centthe maximum since 1994, immediately after Tangentopoli.
This is clearly seen with restaurateurs who behave exactly as Caffè had anticipated: the bill goes up, the bill rises proportionally, as if it were normal (it should at least be redistributed). One might rightly think: just don’t go to Michelin restaurants (which are always full and difficult to book anyway). It should be added: most people never went there because they couldn’t afford them before. But the crux of the matter is that in a city like Milan the starred, from an economic point of view, are economic indicators, the tip of the pyramid, indeed of the iceberg. The rest is less noticeable but follows accordingly. The same phenomenon is also emerging for rents. Furthermore, the ECB is raising the rates that affect mortgages.
Therefore, the trend is also marked for buying. Higher costs, higher prices (Citylife is offering large apartments at around 10 thousand euros per square meter. And only because the silent but in the past constant demand from the Russians suddenly disappeared). The stickiness of prices downwards (they rise quickly but readjust downwards very very slowly) risks creating a lasting wall in the city’s ability to attract talent. Canceling the work done in the pre-Covid years. In this regard, the starred indicator must also be looked at by those who do not go: if the gap between those who can and those who cannot grows in Milan, the fallout is social and therefore collective.
The effect has been beautifully described by Trilussa: the chickens of the Milanese can apparently increase, but the truth is that they eat them less and less. This is the key point of relapse for the national and international ambitions of the city, a place of design, of the Human Technopole and of Mind, of universities such as Bocconi, Politenico and Bicocca that look to Northern Europe, of the young and technological skyline that has become a new brand. If Milan wants to remain a popular destination for brains (increasingly attracted by the satellite dimension of smart working and therefore with an important generational alternative) must make a compromise with itself and understand what city it wants to be: a demographic elephant for the rich or a rabbit capable of reproducing experiences and talents..
If you want to stay updated on news from Milan and Lombardy, subscribe to the Corriere Milano newsletter for free. It arrives every Saturday in your mailbox at 7am. That’s enough
September 11, 2022 (change September 11, 2022 | 07:39)
© REPRODUCTION RESERVED