SHARE
COPY LINK

ECONOMY

Electric scooters and takeaways: What people in Italy are spending and saving on this year

New statistics have revealed Italian consumers' changing spending habits during the pandemic. Here's what people are now spending less on, and buying for the first time.

Electric scooters and takeaways: What people in Italy are spending and saving on this year
Photo by: Valentina Locatelli / Unsplash

Data from the annual consumer price index, as compiled by Italy’s national statistics body Istat, has divulged what Italians have been spending their money on over the past year.

Average spending has hit a low with the so-called ‘shopping cart’ expenditure declining by 0.7% year-on-year. That’s a level not seen since August 1997, when the annual decrease was -0.8%.

READ ALSO: Indoor dining and later curfew: Italy’s new timetable for easing Covid-19 restrictions

Some items and services have increased in popularity despite an overall decline in buying.

Naturally, due to the pandemic, certain products such as surgical masks and hand gel feature highly on that list.

In fact, spending on health services and items has increased by 0.8% compared to the year before, making up 9.7% of the overall average outgoings.

Other, perhaps more surprising, spending trends have emerged too.

Electric scooter sharing programmes and electric charging points for cars have entered the family spending budget, according to the report.

READ ALSO: What you need to know about Italy’s new electric scooter craze

Transport spending as a whole has declined by 2.2% compared to the previous year. Its share of overall spending is now 12.5%.

Other notable changes include an increase in the food and non-alcoholic beverages bill, up by 3.1% compared to last year, accounting for 19.2% of the overall household spend.

Housing, water, electricity and fuel are up by 1.2%, making 11.2% of the total share. Health care and living expenses, meanwhile, are up by 0.8%, creating an overall share of 9.7% of the total spend.

Spending on accommodation and food services, on the other hand, is down by 3.7% and recreation, entertainment and culture is down by 0.7%. That makes 8.9% and 7% of the overall spend respectively.

READ ALSO: Fast trains and extended building bonus: How Italy’s EU recovery plan could affect you

The survey measures the purchasing decisions on items in the areas of food, home and personal care. Even though average household spending is down, inflation is up overall, equal to 1.1%, which is an increase from 0.8% in March.

“In April, it is the acceleration of energy goods prices that drive the further growth of inflation,” explained Istat.

The Istat data was released at the same time as the confederation of businesses, Confcommercio, compiled statistics in collaboration with social and economic research centre Censis.

Together, they have analysed the impact of the pandemic on confidence, prospects and household consumption in their latest report.

The figures are pretty bleak, with a collapse in consumption equal to €1,831 per person in 2020. They noted an increase in savings of €82 billion, though – an effect of the uncertainty caused by the coronavirus.

Those are tied-up funds holding back economic recovery, they claimed.

READ ALSO: Italy to spend 40 billion more to help virus-hit economy

According to the survey, citizens’ confidence in the near future is improving, but there’s still caution.

One in five families have already decided that they will not go on holiday this summer and almost half of families (47.4%) haven’t yet made up their minds.

Confcommercio chairman Carlo Sangalli said, “The pandemic is easing and the conditions are in place for a safe start. Businesses need more normality and certainty to be able to plan their activities.”

“Starting with more robust support, which has yet to arrive. We need to accelerate in order to recover losses and strengthen an economic growth that is still too weak,” he added.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

MONEY

The verdict: What are the best banks for foreigners in Italy?

Picking the right banking option in Italy can be hard, but The Local's readers have shared their experiences and advice to give you a head start.

The verdict: What are the best banks for foreigners in Italy?

If you’re planning on moving to Italy, opening a bank account will be one of the very first things you’ll have to do in the country.

Overseas accounts (especially those from outside the eurozone) are unlikely to cut it for everyday tasks like paying bills and taxes, receiving an Italian salary and taking out insurance as many Italian authorities require an account with an Italian IBAN number for these purposes.

Italy has a large number of banks to choose from, ranging from traditional Italian institutions to international banks to a host of online-only operators that have grown in popularity in recent years.

But Italian-only online information, confusing paperwork and a swarm of different offers can make it hard to find the right option, which is why we asked readers of The Local to share some of their best insider tips in a recent survey.

Traditional v online banking

If you’re looking to open an account in Italy, one of the very first decisions you’ll be faced with will be whether to opt for a traditional institution or a digital banking platform. 

Overall, around four in ten respondents indicated an online banking platform as the best option for foreigners in the country, with many pointing to low account fees, advantageous currency exchange rates and a far greater degree of flexibility compared to traditional institutions. 

READ ALSO: Which documents do I need to open an Italian bank account?

The majority of respondents however selected a traditional Italian bank as the best option, citing greater levels of trust in traditional institutions, the advantage of dealing with people face to face and, in some cases, the availability of specific services and information for foreign nationals. 

Traditional banks

Italy’s biggest private bank, Intesa Sanpaolo, was recommended by multiple readers as the best option for foreign nationals in the country.

Intesa San Carlo, Italy

People walk past the headquarters of Italy’s Intesa Sanpaolo in Turin’s Piazza San Carlo in January 2017. Photo by Marco BERTORELLO / AFP

Iain Gosling, a UK national living in Pisa, Tuscany, highlighted the quality of their online services, saying: “The app is easy to use and it translates into English automatically. Online banking is easy. We maintain bank accounts in the UK and send funds to ISP, no problem.”

Another British national living in Pisa focused on the advantages of dealing with Italy’s largest bank, saying that “a lot of operations are done through ISP so the transaction fee is low” and the large number of branches across Italy makes it easy to “open an account quickly in person.”

Laura, a US-Italian citizen living in Ascoli Piceno, Marche, praised Intesa Sanpaolo for their customer service, saying staff were “patient and understanding” following a bad experience with another bank.

READ ALSO: What you need to know about opening a bank account in Italy

Besides Intesa Sanpaolo, UniCredit was also mentioned on multiple occasions within the survey, though opinions on Italy’s second-largest bank were mixed.

Stewart, an Australian national living in Umbria, said they “never had any problem paying bills or making transfers” even when out of the country, and the bank has “a pretty good website, including an English-language (sort of) option”.

But other readers had rather different experiences. Laura, from Ascoli Piceno, said her experience with UniCredit was “a nightmare” as “they couldn’t open the account correctly” and trying to solve the issue was “humiliating and impossible”. 

Cindy in Orte, Lazio, mentioned that UniCredit “arbitrarily raised checking account rates for foreigners who are not residents from 20€ annual to 120€ annual”, whilst another reader reported that “it took someone I know three months to open an account”.

Finally, two readers recommended BancoPosta – a branch of Italy’s Post Office offering basic financial services – based on low fees, presence in all major Italian towns, and easy sign-up procedures.

Online banking and transfer platforms

Wise (formerly TransferWise) was by far the most highly recommended digital platform within our survey.

A British reader in Tuscany hailed it for its “speedy transfers, good exchange rates, and prompt problem resolution”, highlighting the contrast with “slow, expensive and paper intensive” traditional banks.

Revolut

A close-up detail of a card from digital bank Revolut. Photo by JUSTIN TALLIS / AFP

Jenny Lantschner, a British-Italian national in Lucca, also pointed out Wise services’ speed, saying that it’s “very easy to use on a smartphone and will send funds within minutes”.

Besides Wise, several readers recommended Italian online bank Fineco, which they praised for easy account-opening procedures, efficient online operations and low fees. 

Lithuania-based Revolut was also recommended by some readers on the basis of “low cost, convenience, and near spot-market rates for currency exchange”, though others mentioned having problems with money transfers. 

For instance, Bob, an American national in Siracusa, Sicily said that “English, American, and Italian banks all refused to fund” his account.

Finally, Steve in Lombardy advised against opening accounts with Germany-based N26 as they “have been closing accounts in Italy and not giving back the money to customers”.

Though N26 is an active digital bank in Italy, it has been operating in a limited capacity for nearly two years following on-site inspections in late 2021 that revealed shortcomings in terms of security legislation and weaknesses in anti-laundering measures. 

Readers of The Local have recently reported having their accounts shut and being locked out of their funds for no apparent reason.

SHOW COMMENTS