Italian Consumers Hit by Summer Price Surge as Inflation Bites

Italian consumers are decrying a holiday season “price shock” as costs for food and beaches surged in July, prompting opposition parties to condemn government inaction amid “out-of-control inflation” and stagnant wages. National statistics bureau Istat confirmed annual inflation rose to 1.7% in July 2024, accelerating from June’s 0.4% monthly increase. Food prices jumped 3.7% year-on-year (up from 3.3% in June), while transport costs rose 3.3% (from 2.9%). Energy prices continued to decline, falling 3.4%.

The consumer basket saw annual inflation climb to 3.2% (preliminary estimate was 3.4%), with the highest regional increase in the South (+1.9%). Rimini recorded Italy’s sharpest city-level inflation at +2.8%, followed by Padua and Naples (+2.3% each), while Reggio Emilia (+0.8%) saw the mildest rise.

Consumer group Codacons warns the 1.7% inflation equates to an extra €559 annually for a typical household, rising to €761 for families with two children. Tourism costs soared: domestic flights surged 35.9%, ferry tickets 10.9%, car rentals 9.9%, and national vacation packages 10.3% year-on-year. Beach/pool access rose 3.4%. Assoutenti reported dramatic food hikes: tomatoes +12.3%, fresh fruit +8.8%, butter +16.9%, and coffee +23.4%.

Opposition leaders intensified criticism. Italia Viva’s Raffaella Paita stated the government “offers no shelter from inflation’s storms,” while AVS’s Nicola Fratoianni noted wage stagnation amid rising prices. AVS has proposed legislation linking wages to living costs. PD Senator Francesco Boccia highlighted a 7.5% real wage drop since 2021, urging support measures ahead of anticipated US tariffs. “Italy is no longer a country for families,” Boccia declared, accusing the Meloni government of ignoring the inflation crisis.

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