Italy's wages fall behind inflation while public debt rises

In Italy, wage growth is not keeping pace with inflation, widening the gap between rising living costs and salary increases. Economist Gianni Lepre highlighted the continuing pressure on purchasing power.

Data from the Bank of Italy show that public debt rose by €26.6 billion in May, reaching €3.181 trillion. The increase reflects higher funding needs of public administrations, Treasury liquidity, inflation‑linked securities and exchange‑rate effects. Tax revenues for May were €44.7 billion, up 2.6 % from the previous year, and year‑to‑date revenues rose 2 % to €217.7 billion. The share of debt held by the Bank of Italy fell to 17.2 %, while non‑resident holders rose to 35.7 % and other resident holders to 14.6 %.