Shifting Spending Patterns in Italy Amid Rising Inflation

Inflation has had a significant impact on the economic well-being of Italian families and individuals. According to the Agi-Censis “Innovation Diary” report, between 2021 and 2022, an increase in gross disposable income at current prices of 5.5% led to a reduction in purchasing power of consumer families equal to 1.6%, or 21 billion euros less in family economic resources. This decrease was even more pronounced for financial assets kept liquid during these years, with a negative variation in cash and sight deposits reaching 9.6% in the last year.

The increase in food prices also affected the spending habits of Italians, with over six out of ten confirming that they had to change their food spending due to the rise in product prices. The quality and quantity of food purchases were reduced by almost half (29.5%) among those who changed their spending habits, with higher percentages among younger people (35.6%) and those living in Southern regions (66.6%).

The profile of those most affected by inflation also highlights certain demographic factors, such as age and education level. Among those who experienced a reduction in purchasing power were unemployed individuals (74%) and housewives (72%), while those with low educational qualifications (maximum middle school diploma) made up 66.8%. Additionally, income level played a role, with higher percentages among those earning less than €15,000 per year (73.5%) and lower percentages among income earners between €15,000 and €30,000 per year (66.6%).

Overall, inflation has had a significant impact on the financial well-being of Italian families and individuals, reducing their purchasing power and changing their spending habits as they adapt to the new economic landscape.

Leave a Reply