https://sputnikglobe.com/20230702/italian-families-cut-on-food-amid-growing-prices-1111628471.html

Italian Families Cut on Food Amid Growing Prices

Italian Families Cut on Food Amid Growing Prices

Sputnik International

Households in Italy grapple declining living standards due to inflation.

2023-07-02T19:44+0000

2023-07-02T19:44+0000

2023-09-01T13:16+0000

world

italy

economy

economic crisis

inflation

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Italian households are reducing their food spending due to soaring inflation, according to the General Confederation of Italian Industry (Confindustria). The report reveals a significant decline in household grocery expenses, with a 3.7% drop in 2022 and an alarming 8.7% decline in the fourth quarter of 2022 compared to the first quarter of 2021.In addition, a report by the National Consumer Union (UNC) in May shows that 35.1% of Italian households experienced declining living standards over the past year, compared to 30.5% in 2021.The UNC study highlights that for families with two children, the inflation rate of 7.7% as of May would result in an additional €2,306 ($2,515) in annual bills. Out of this amount, €1,015 would be allocated to food and beverages, while €1,062 would cover other essential products in their consumer basket.Massimiliano Donna, the head of the National Consumer Union (UNC), called the report "alarming," and further noted that “Italians are on a forced diet due to skyrocketing inflation.”Donna points out that this situation not only affects individuals but also has serious adverse effects on Italy's economic growth. With consumption representing 60% of GDP, if Italians are unable to make purchases, it leads to decreased sales for merchants and reduced production for businesses.The UNC had previously observed a trend of reduced food consumption in Italy during the pandemic, with purchases declining by 4.4% in January 2023 compared to the previous year and by 6.3% compared to the same month in 2021. This trend highlights the growing challenges Italian families face in maintaining their food consumption levels.According to preliminary estimates by Instituto Nazionale di Statistica (ISTAT), Italy's inflation rate slowed in June 2023. The consumer price index for the whole nation (NIC) remained unchanged compared to the previous month but increased by 6.4% annually, lower than the 7.6% recorded in May.However, there was still an upward contribution to the inflation rate from the prices of unprocessed food. The core inflation rate, excluding energy and unprocessed food, stood at 5.6%.This suggests that while there was a slowdown in inflation, prices of groceries and unprocessed food continued to increase, though at a slightly lower rate than the previous month.These findings shed light on the causes and effects of the economic situation in Italy. The combination of soaring inflation, particularly in energy prices, and increased costs of essential goods and services has placed a significant financial burden on Italian households. This has led to reduced food spending, impacting both individuals and the overall economy.

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