Rising prices for essential goods and services are compelling households to cut discretionary spending, according to analysis by Confcommercio’s research center. “Beyond impacting actual household behavior,” the report notes, “if I must spend more to buy the same necessary goods and services, I’ll reduce allocations to other consumption when disposable income doesn’t keep pace.” Thirty years of sustained inflation has bred “consumer distrust toward the future,” driving “highly prudent behavior regarding non-essential purchases.” This trend curbs economic growth and undermines “citizens’ welfare and life satisfaction.”
The issue centers on structurally surging mandatory expenses—housing, energy, utilities, healthcare, transport, and insurance—which increasingly “shrink the realm of free consumption choices and limit domestic demand-led economic growth.”
From retailers’ perspective, services like dining, tourism, and leisure show signs of recovery (+€134 per capita), while traditional goods (including food) continue declining (-€57). Confcommercio warns this pattern—compounded by demographic decline and shifting consumption habits—demands urgent policy action: revitalizing domestic demand requires “removing barriers to spending freedom,” notably by reducing fixed costs and protecting purchasing power.
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