The cost-of-living crisis is affecting household finances
Soaring inflation is causing Italian households to curb spending on food, according to a report by the General Confederation of Italian Industry (Confindustria).
The report showed household spending on groceries is in “sharp decline.” It dropped by 3.7% in 2022, and by 8.7% in the fourth quarter of 2022 when compared with the first quarter of 2021.
“This has become a burden on overall consumption, given that spending on food accounts for 14% of all expenses, second only to spending on housing, water and energy (23%),” Confindustria wrote.
The head of the National Consumer Union (UNC), Massimiliano Dona, described the report as “alarming” and claimed that “Italians are on a forced diet due to skyrocketing inflation.”
He noted that the situation had a serious negative effect on economic growth, considering that “consumption represents 60% of GDP and that, if Italians don’t buy, then merchants don’t sell and businesses do not produce.”
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UNC experts earlier noted that the trend of cutting back on food in Italy had emerged during the pandemic. Analysts found that in January 2023, purchases decreased by 4.4% in physical terms compared to one year previously, and by 6.3% compared to the same month of 2021.
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