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Household incomes on the rise but not enough to protect themselves from the jump in inflation

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In 2021 the propensity to save of households drops to 13.1% (from 15.6% in 2020), while the disposable income final consumption expenditure increased by 3.8%, by 7.0%. This is what Istat reports according to which in 2021 the expansion of production activity and the return of wages to the levels of 2019 generated a growth in the disposable income of consumer households of 3.8% (+42.5 billion euro), after a contraction of 2.7% (-30.6 billion) in 2020.

The purchasing powerthat is, disposable income expressed in real terms, although increasing by 2.1% on an annual basis, has not returned to pre-crisis levels.
The growth of the economy has led to an increase of 74.3 billion euros in the primary income of families (+ 6.3%). THE income from work employees increased by 51.4 billion euros (+ 7.6%), as well as those deriving from the‘business activity (+21.2 billion, + 7.3%). In particular, from small businesses they own, households received profits of € 16.5 billion more than in 2020 (+ 8.2%).

Inflation grows faster than incomes

Essentially growing incomes, says the National Statistical Institute, but they are not enough to cover themselves from leap in inflation. In fact, in March the consumer price index accelerated for the ninth consecutive month, registering an increase of 6.7% on an annual basis (from + 5.7% in the previous month), a level not recorded since 1991.

“Our worst forecasts are unfortunately confirmed by Istat data – commented the president of Codacons Carlo Rienzi – Inflation at 6.7%, considering the total consumption of a family, translates into a raised by +2,058 euros per year for the “typical” family, and even +2.674 euros per year for a household with two children “. “The expensive fuel and the rise in energy bills have pushed retail prices up in all sectors, but real speculations related to the war in Ukraine also weigh on the inflation rate in March – reports President Rienzi – of prices, we are now awaiting the outcome of the investigations opened by the Antitrust and prosecutors throughout Italy thanks to the complaints presented by Codacons and, if it is ascertained that the increase in the price lists was determined by speculative phenomena, we will initiate a maxi-class action against responsible, on behalf of millions of families and businesses “.

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  • families
  • consumer prices
  • income

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