• Sun. Dec 3rd, 2023

Shifting Spending Patterns in Italy Amid Rising Inflation


Nov 17, 2023

Inflation is having a significant impact on Italian families, reducing their purchasing power by 21 billion euros and 213 billion euros in financial assets. Six out of ten Italians have had to change their food spending habits to cope with the increase in prices, according to the Agi-Censis “Innovation Diary” report on the reaction of Italians to innovative processes.

The immediate impact of inflation is felt on the real spending capacity of families. Between 2021 and 2022, despite an increase in gross disposable income at current prices of 5.5%, there will be a reduction in purchasing power of consumer families equal to 1.6%, or 21 billion euros less in family economic resources. The further increase in amounts between 2019 and 2022 of 7.4% is instead matched by a reduction of almost four percentage points in the period 2022-2023.

The negative impact on economic availability is also observed on the side of liquid investments kept over the years. In the last year, the race for prudential liquidity stopped and there was a negative variation in cash and sight deposits amounting to -9.6%.

Almost one-third (33%) of Italians reported reducing their consumption between 2019 and 2018 due to rising food prices; this percentage rose to nearly half (47%) when it came to drinks purchases, and even higher (58%) for personal hygiene care services. Over six out of ten Italians confirmed that they had changed their food spending habits due to price increases (63%).

The profile of those most affected by inflation shows that residents from Southern regions are more vulnerable (74%), as are people aged between 35 and 64 (67%) and those with low educational qualifications (up to a middle school diploma, at least) (74%). Factors such as professional status and gross annual income also contribute to identifying those most affected, including unemployed individuals (68%)

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