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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 many sources carry each claim.
- [○ 1 SOURCE] 61% of surveyed Italians say their purchasing power has decreased, on average by 18%. www.economymagazine.it
- [○ 1 SOURCE] The richest 10% of families own 59.9% of Italy’s total wealth. www.laleggepertutti.it
- [○ 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. panoramadellasanita.it
- [○ 1 SOURCE] 28.7% of respondents cannot pay utilities. www.laleggepertutti.it
- [○ 1 SOURCE] 45% of families have difficulty paying rent. www.laleggepertutti.it
- [○ 1 SOURCE] Since Jan 2021, wages rose 13% while prices rose 22.7%, creating a 9.7‑percentage‑point gap by July 2026. www.economymagazine.it
- [○ 1 SOURCE] 62.1% of Italians struggle to make ends meet. www.laleggepertutti.it
- [○ 1 SOURCE] 27% of Italians plan to stay home for summer holidays, while only 23% intend to travel abroad. www.teleborsa.it
- [○ 1 SOURCE] Average hourly wages rose 2.6% in the first half of 2026 and 2.4% in June, while inflation reached 3%. www.lanotiziagiornale.it
- [○ 1 SOURCE] A €0.10 rise in retail fuel price adds roughly €300 million in monthly tax revenue. www.ilfattoquotidiano.it