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Household income up but purchasing power hit by inflation

Household income up but purchasing power hit by inflation

In first quarter of 2022, cost of living crisis bites

ROME, 05 July 2022, 13:01

Redazione ANSA

ANSACheck

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-     ALL RIGHTS RESERVED
- ALL RIGHTS RESERVED

Italian household income rose 2.6% in the first quarter of this year on the previous quarter but purchasing power only rose by 0.3% because of the cost of living crisis, ISTAT said Tuesday.
    Italy's annual inflation rate rose to 8% in June, the highest level since it was at 8.2% in January 1986, according to preliminary data released by ISTAT on Friday.
    The annual inflation rate was 6.8% in May.
    The national statistics agency said energy was the driver of the soaring prices, rising by 48.7% in year-on-year terms in June, up from 42.6% in May.
    It said its trolley index of frequently bought items such as food and household goods was up 8.6% in year-on-year terms, again the highest level since January 1986.
    In the first quarter of this year, ISTAT said, the propensity of families to save was 12.6%, 1.1 percentage points up on the previous quarter.
    Household spending was up 1.4%, the stats agency said.
    But disposable income was just 2.6% up.
   

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