Due to high inflation, Italians’ spending in the second half of this year will decrease by another 3.7 billion euros. Information on this issue was provided by the press service of the local entrepreneurs’ association Confesercenti. published On your website.
“The high cost of living slows down consumption. “The decline in purchasing power and savings is starting to impact family spending,” the report says.
The slowdown in consumption in Italy is due to “prolonged high inflation that has reduced the purchasing power of Italians,” the association writes. At the same time, experts explained that at the first stage, citizens used their savings to maintain the same level of consumption, but consumption has noticeably decreased in the last two years with constant price increases.
At the end of January, Confesercenti reported that Italian households will spend €41.5 billion in savings in 2022 due to high inflation and rising energy prices. According to the association, Italians spend 45.8 percent of their monthly income on electricity bills. In 2019, Italian citizens spent 35 percent on this expense item. More than 10 million middle- and low-income Italians pay 50 percent of their monthly income to pay electricity bills. They also buy less food and drink. Spending on this expense category decreased from 25% to 23%.
1 April European Commissioner for Economic Affairs Paolo Gentiloni statedWe do not expect the Italian economy to enter recession in the foreseeable future. This is due to the gradual decline in inflation, the decline in energy prices and sufficient stability of the local labor market.
As of the end of June this year, the increase in consumer prices in the Italian domestic market was 6.7% on an annual basis. Thus, this figure dropped to the lowest level in 14 months.
Previously “socialbites.ca” saidIt was stated that the European Central Bank increased interest rates to combat inflation.