Inflation in Italy collapsed budgets: prices soared by 4.1%

Italy is facing a record inflation acceleration in four years. According to the National Institute of Statistics (ISTAT), prices rose almost 1% in September compared to the previous month. In annual terms, the figure reached 4.1%.

This figure significantly exceeded the Central Bank’s forecast of 3.1% and the government’s target of 2%. The main driver of growth is the energy sector. The cost of electricity, gas and motor fuel jumped 22.3 percent from September last year.

Food also posted a record jump from October 2022, adding 2% in price for the month. The situation has caused alarm in the government. Prime Minister George Meloni appealed to the European Union to allow to increase the ceiling of the budget deficit. These funds are planned to be used to compensate for the high costs of citizens for energy.

The gap between official statistics and reality is acute. According to a survey by the Noto Sondaggi Institute, three-quarters of Italians say rising living costs are the country’s biggest problem. At the same time, subjective “felt” inflation reaches 10-15%.