Italian purchasing power fell 54% in the last year, social and economic think tank NOMISMA said Monday.
One Italian in four over the last year said they spent all they earned, 26% of households fear not getting to the end of the month, and 38% of savers do so out of uncertainty about the future, said the first report from NOMISMA’s Changing World Observatory.
The ability to save has dropped for over half of those surveyed, the report said.
In the wake of the COVID-19 pandemic, Ukraine war, surge in energy costs and resurgence of inflation, a climate of uncertainty has been accentuated, said the report on a representative sample of Italians between the ages of 18 and 65.
In the last year, the report said, 88% of households have adopted targeted savings strategies to cope with the cost of living crisis.
Despite this, some 14% of those polled said they earned less than they needed to get by.
A quarter of Italian households said they spent all their money on essentials while only one in two Italian said they spent less than what they earned, managing to save without having to give up too much.
