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Inflation is increasing, how much should salaries increase?

According to data published by Istat in October 2024, Average monthly consumption expenditures of Italian families was equal to 2,738 euros in 2023marking an increase compared to last year (+4.3% compared to 2,625 euros in 2022).

However, the effect of inflation has reduced the purchasing power of families in real terms and a comparison of family budget expenditure with average salaries shows that Life in Italy is easily higher than the average monthly income of a worker.

Salaries in Italy are not enough to cover family expenses.

The ISTAT analysis, when compared with the latest data on average wages in Italy, clearly highlights how the economic pressure on Italian families is increasing, while Wages are essentially stagnant..

Suffice it to say, according to a study by CGIA of Mestre based on 2023 INPS data, Average Gross Salary It differs from the private sector 1.600 AI 1,900 euros per monthBut with strong inequality between north and south, for example, the average salary of a worker in Milan is around 31,200 euros, while in Palermo it stops at an average of 16,300 euros a year.

So, you don’t even have to do who knows what calculations to arrive at a clear conclusion. That is, comparing average salaries with average monthly household expenses (equivalent to 2,738 euros in 2023 according to Istat) shows that The cost of living is easily higher than the average monthly income. of a worker.

Actually, for one Supporting a family on one salaryBeing able to cover the equivalent of 2,738 euros a month can be complicated, especially considering that the cost of living includes the costs of food, utilities, rent or mortgage, and other essential goods and services. Certainly not excessive expenses.

Adjustments in salaries are increasingly necessary.

In recent years, the gap between salaries and family spending in Italy has reached alarming levels Living expenses are becoming increasingly difficult for families to afford..

However, what makes a salary adjustment necessary is not only the difference between necessary expenses and salary (Eq 759 Euros). If a situation where households are unable to make ends meet without at least sacrificing their economic well-being is already difficult and unsustainable, the situation becomes even more complicated in the current context if the effects of inflation are taken into account. is

With inflation approaching 5.9% The upward trend continues in 2023 and into 2024, with households losing purchasing power. In detail, last year according to Istat data 1.5% decline in purchasing powerMaking daily expenses more burdensome. Therefore, families find it necessary to revise their priorities, often cutting back on essential expenses or focusing on savings that in many cases are quickly depleting.

How much should salaries increase?

To understand How much should wages increase?It is important to analyze the rate of inflation and the loss of purchasing power. For example if we consider an inflation rate of 5.9%, wages must rise at least by this rate to maintain purchasing power.

This means that those who currently earn 1,600/1,900 euros per month, should have their salaries increased to keep up with inflation. At least 100 euros (which equates to about 5.9% of salary). If we then consider the loss of purchase wages, however, the increase must be greater, or at least 120/130 euros more per month.

And this without any consideration or explanation Depending on the city or region, Where the cost of living is very high and where the salaries, including increments, are not sufficient to cover all expenses on their own.

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