Have you noticed how expensive living in Italy has become in recent years?
It's not just your imagination. Prices have risen significantly, testing the purchasing power of families and workers. Have you ever wondered why? In this article, we will try to shed light on the causes of this growth, the sectors most affected, and how to best address this challenge.
Why does everything cost more?
One of the main reasons is inflation. According to the data ISTAT, over the last twenty years the average annual inflation in Italy has been 2.1%, but in recent years it has undergone a sharp increase. In 2022 it reached 11.6%, the highest value since the 1980s. This means that what you used to buy with €10, today can cost you even double.
Some sectors have suffered particularly heavy price increases:
- Food and Drink: If you shop regularly, you may have noticed that the cost of food has increased by more than $30% since 2003. Oil has increased by $50%, meat by $35%, and dairy by $40%.
- Energy and fuels: From 2019 to 2023, the electricity bill increased by 90%, while the price of gas almost tripled. Have you seen how much a full tank of gasoline costs today? In 2022 it exceeded €2.50 per liter.
- Rentals and houses: Real estate prices in big cities have skyrocketed. If you want to rent a two-room apartment in Milan or Rome, you should be prepared to pay at least €1,100-1,300 per month.
- Transport and services: The bus ticket or public transport pass has increased by more than 25% in the last twenty years. If you used to pay 30€, today you need more than 50€.
The real causes of the price increase
Now I will reveal to you some information that is totally opposed to the mainstream view. According to Modern Monetary Theory (MMT) (see the book “Grandma, I'll explain the crisis to you" or “The Greatest Crime” by Paolo Barnard) rising prices are not always due to scarcity of resources or simple inflation of demand. MMT argues that one Sovereign state with its own currency can emit all the liquidity needed to finance the economy without necessarily generating inflation, provided that this money is used to create productive value.
From the moment money was freed from gold (Gold Standard of 1971) the era of FIAT money began… do you know what that means? That from that moment the State could delegate to the Central Bank to print or create all the liquidity necessary for the Country and its citizens to live in prosperity and abundance.
Money cannot run out and the State does not need citizens' money to finance itself. Mario Draghi, then President of the ECB, confirms this in this interview: VIEW IT BY CLICKING HERE.
It seems incredible, right?
There would be a lot to say on this topic but I would ask to make a mile-long article 😂 If you want to delve deeper I recommend you watch this video on our YouTube channel CLICKING HERE
So why do they make us believe otherwise?
The conclusion is quite deductive… those pulling the strings have implemented a plan to impoverish the masses on a large scale in order to grab the real wealth: companies, land, real estate, gold, prominent positions in government, etc. Laws have been changed in order to increasingly further their advantage.
But how come you didn't notice anything?
They have created fake scarecrows to distract you and create confusion, such as:
- The economic crises
Since 2008, Italy has gone through financial crises, recessions and a global pandemic. Whenever these events occur and new liquidity is not injected into the economy, it slows down and prices tend to rise.
- Energy is increasingly expensive
Italy imports most of its energy, so when international prices rise, our bills are affected. The conflict between Russia and Ukraine has caused gas and electricity prices to skyrocket.
- Taxes and tax pressure
We pay one of the highest taxes in Europe. VAT at 22%, fuel excise duties and indirect taxes directly affect the cost of living.
- Supply problems and increased production costs
The pandemic has disrupted global supply chains. Materials such as wood, steel, and semiconductors have increased in price, driving up the final cost of products.
Learn more CLICKING HERE
How can you protect yourself from rising prices?
The situation is not simple, but there are strategies you can adopt to limit the impact of inflation on your finances:
- Plan your budget: Track your spending, cut out the unnecessary, and prioritize what really matters.
- Look for new sources of income: Self-publishing, Matched Betting, online trading, the business short term rentals, can give you an extra edge in dealing with rising prices.
- Invest Smartly: Protect your savings from inflation by investing in safe assets, such as physical gold. Study, train and understand how to invest your money in order to generate passive income.
Conclusion
Unfortunately, the price increase does not seem to be stopping any time soon. Some estimates say that inflation could stabilize around 4-5% in the coming years, but much will depend on the government's economic choices and the performance of the energy market.
If you want to deal with this situation in the best possible way, you need to be prepared. Follow our blog to stay up to date on strategies to protect your income and share your experiences with us on our Telegram group! (join CLICKING HERE)
Don't get caught unprepared: knowledge is the first step to having control of your financial life!
See you soon
David Bottero
English 
Italian