(Finance) – TheInflation in Italy slows in Auguststanding at +1.1% on an annual basis, compared to +1.3% in July, according to provisional data released this morning by Istat. However, although the slowdown in inflation represents a positive signal for the economy, the costs related to holidays and food products continue to put Italian family budgets under pressure.
Massimiliano Donapresident of theNational Consumers Uniondescribes this summer as “hot” in terms of price increases. hospitality and catering services they recorded a 4.4% increase compared to August 2023forcing families to spend more during the holidays. According to the National Consumers Union, a couple with two children spent on average 108 euros more than the previous year just for accommodation and restaurants. ThePrice increases have also hit the shopping cartwith an increase of 88 euros per year for the same family, further increasing the cost of living.
The Codacons confirms the analysis, highlighting how the price increases have particularly affected holiday packages, with an increase of 37.4% on an annual basis. Campsites and holiday villages have also suffered a 12.9% increasewhile hotel prices increased by 4.2%. This surge in costs had a direct impact on family choiceswith 41.3% of Italians choosing to take short, budget-friendly vacations.
Despite the decline in inflation, Istat data show that the consumption remains fragilealso reflected in the decline in consumer confidence, dropped from 98.9 to 96.1 points in August. The increase in the cost of basic necessities, together with the growth in school expenses (+6.6% for the kit and +18% for the books), contributes to curbing domestic demand.
In this context, consumer associations and economic experts they ask the European Central Bank to ease monetary tighteningto allow a recovery in consumption and reduce the pressure on family budgets. Furthermore, government intervention is called for support the most vulnerable familieswith measures such as the Fund to combat energy and food povertya reform of VAT rates on consumer goods and greater aid for school expenses.
While inflation continues to weigh on households, the hope is that the economic slowdown and rising employment may consolidate the purchasing power of Italians, paving the way for a more stable future. However, it remains to be seen whether monetary and fiscal policies will be able to address the remaining challenges.