The war in Iran wipes out two years of gains in purchasing power

A problematic picture

Inflation then began to rise again; in June it stood at 3 per cent, driven by the year-on-year increase in regulated energy prices (9.2 per cent) and unregulated energy prices (13.3 per cent). These price rises have had a greater impact on the most vulnerable households; over the second quarter as a whole, inflation stood at 3.7 per cent for households with the lowest levels of expenditure and 2.6 per cent for those spending the most. This is because those with fewer resources spend a larger proportion of their income on energy, food and essential goods.

“Only for three in ten households has purchasing power remained unchanged compared with 2021,” says Alex Papi, an economist at Findomestic. For 61 per cent, it has fallen: “Italians are rightly feeling the impact of rising prices, which, in just a few months, have eroded two years of recovery.”

The figures on perceptions of the economic situation are also negative: “For four in ten households, the situation remains problematic,” adds Claudio Bardazzi, head of the Findomestic Observatory. “Savings capacity has also stagnated: a goal achieved by six in ten households, but still a pipe dream for the other four.”

Holidays remain a priority

In July, purchase intentions for the next three months fell by 2.7 per cent overall. Not all categories are declining at the same rate: 59 per cent of respondents plan to book holidays, 2.4 percentage points more than in June. This is followed by small household appliances, at 36 per cent, and DIY equipment, at 33 per cent.

The largest and easiest-to-postpone commitments have seen a decline: plans to renovate the home have fallen to 13 per cent, a drop of 3.8 percentage points; spending on windows and doors has fallen by 4.5 points to 11 per cent; spending on furniture, telephones, sports equipment and light transport has also declined.

However, rising energy prices are driving some purchasing decisions: photovoltaic and solar thermal systems have risen to 10 per cent; condensing and biomass boilers have increased by 2.5 percentage points; and heat pumps have reached 9 per cent.