Italy’s inflation slows, but food and holiday prices keep rising

Italy’s annual inflation rate fell to 1.6% in May, down from 1.9% in April, according to final data released by Istat today. However, consumer groups warn that the drop hides worrying price trends for households, with food and holiday costs still climbing.

Massimiliano Dona, president of the National Consumers Union, said the lower headline figure is “an optical illusion”, as essential spending remains under pressure. Food prices rose 3.2% year-on-year — unchanged from April — and climbed 0.4% month-on-month, defying hopes for a post-Easter slowdown. The cost of basic groceries edged up from +2.6% to +2.7%.

Some staples still feel the effects of raw material shortages: butter is up 19.6% compared to last year, coffee 24.7%, chocolate 12%, cocoa 19.1% and eggs 7.1%. Seasonal products are also more expensive: ice cream costs 3.4% more, soft drinks 4.1%, bottled water 3% and summer fruit like peaches and citrus up between 5% and 13%.

Assoutenti president Gabriele Melluso warned that this trend is unlikely to ease soon and could get worse if oil prices continue to rise.

Travel-related costs are also surging ahead of summer. According to Codacons, domestic flights cost 30.8% more than last year, ferry tickets are up 9.7% and hotel prices have increased by 3.3%. Vacation rentals and B&Bs have seen price rises of 5.8%.

“The higher costs will hit families planning summer holidays,” Codacons said, calling it a “blow to household budgets.”

Federconsumatori’s observatory estimates that inflation at current levels will cost the average family an extra €527 per year. Rising prices are pushing more households to cut back on fresh meat and fish, hunt for discounts or shop at budget supermarkets, the group added, warning that for many, food spending is becoming a daily struggle despite having a job.