Italy faces falling purchasing power as wages lag behind inflation
Recent surveys reveal that a majority of Italians are under financial strain. About 62.1% say they struggle to make ends meet, 45% report difficulty paying rent and 28.7% cannot cover utility bills. A July 2026 poll found that 61% perceive their purchasing power has dropped, on average by 18%, amounting to roughly an 11% loss over the past five years.
Since January 2021, nominal wages have risen 13% while consumer prices have climbed 22.7%, widening the real wage‑price gap to 9.7 percentage points by mid‑2026. In the first half of 2026 average hourly wages grew 2.6% (2.4% in June) but inflation reached 3%, further eroding buying power. The cost‑of‑living squeeze is reflected in consumer behaviour: 27% of Italians say they will stay at home for the summer holiday and only 23% plan to travel abroad, while 59% would still prefer a domestic stay despite rising expenses.
Additional factors aggravate the situation. Fuel and diesel taxes have risen sharply, with a €0.10 increase in retail fuel prices adding roughly €300 million in monthly state revenue. Government officials, including Senator Francesco Zaffini, acknowledge the modest wage gains but stress that the overall trend remains unfavourable for households.
Entities: Centro di formazione e ricerca sui consumi · Eurispes · Findomestic Observatorio · Findomestic Observatory · Francesco Zaffini · Giorgia Meloni · Italian families · Italian households · Italy · Luigi Ponsillo · Senator Francesco Zaffini · YouGov
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] 61% of surveyed Italians say their purchasing power has decreased, on average by 18%. (new)
- [○ 1 SOURCE] The richest 10% of families own 59.9% of Italy’s total wealth. (Eurispes report)
- [○ 1 SOURCE] Average hourly wages rose 2.6% in the first half of 2026, with a 2.4% increase in June compared with the previous year. (ISTAT data cited by Senator Francesco Zaffini)
- [○ 1 SOURCE] 28.7% of respondents cannot pay utilities. (new)
- [○ 1 SOURCE] 45% of families have difficulty paying rent. (new)
- [○ 1 SOURCE] Since Jan 2021, wages rose 13% while prices rose 22.7%, creating a 9.7‑percentage‑point gap by July 2026. (new)
- [○ 1 SOURCE] 62.1% of Italians struggle to make ends meet. (new)
- [○ 1 SOURCE] 27% of Italians plan to stay home for summer holidays, while only 23% intend to travel abroad. (new)
- [○ 1 SOURCE] Average hourly wages rose 2.6% in the first half of 2026 and 2.4% in June, while inflation reached 3%. (new)
- [○ 1 SOURCE] A €0.10 rise in retail fuel price adds roughly €300 million in monthly tax revenue. (new)