There is a lot of talk about the skyrocketing cost of living in Italy and around the world. But, in reality, it is not what reduces the quality of life of citizens. What can literally destroy people’s lives is the cost of living in relation to per capita income. Simply put: a state employee who earns 2,000 euros net per month, in Italy things are better in the South than in the North, where life costs exponentially more, but the income is the same. The point is that today, between rising central bank rates, inflation and starvation wages (due to taxation that is, to say the least, unfavorable for the worker) the situation has become particularly unsustainable for Italians living in the North, where the costs they are often higher and salaries are not always higher than in the South.
The existence of a real “Northern Question” is demonstrated by the percentages that the National Consumers Union has developed based on the Istat numbers updated in February 2024. At the top of the top ten of the most expensive cities in Italy we find Bolzano, where the Inflation of 1.7% translates into a greater additional expense on an annual basis of 492 euros for an average family (452 with the February 2023 survey). Silver medal for Brindisi, where the price increase was 2.1%, the record for the month of February, with an annual spending increase of 398 per family. Third place for Naples which with +1.7% has an additional expense of 375 euros per year for a typical family (it would have been 344 euros last year).
Just off the podium there are only Northern cities: Venice (+1.4%, in fifth place for inflation, equal to 369 euros), then Trieste (+1.4%, 342 euros), in sixth place Florence (+1 .3%, +340 euros), then Bologna (+1.2%, 334 euros), Pisa (+1.3%, 332 euros) and Rimini (+1.2%, 326 euros). Alessandria closes the top ten (+1.3%, 325 euros). As the UNC points out, on the contrary, in the ranking of the most virtuous cities in Italy, nine cities are in deflation and almost all of them from Rome downwards. Among these, Campobasso wins where inflation is the lowest in Italy, equal to -0.9% and with an equivalent saving, on average, of 186 euros on an annual basis. Silver medal, however (among the few in the North) for Imperia, where the decrease in prices of 0.7% determines a drop in annual expenditure equal to 157 euros for a typical family. On the lowest step of the podium of the most “saving” cities is breaking latest news which, with -0.7%, has a cost cut of 156 euros per year for an average family.
Even on a regional basis, the trend does not change with the North mostly at a clear disadvantage. At the top of the ranking of the most “expensive” regions, with an annual inflation of +1%, is Trentino-Alto Adige which records an average burden of 284 euros per family on an annual basis. Veneto follows, where the growth in prices of 1.1% implies a surge in the cost of living equal to 274 euros. In third position is Lazio (+1.1% and +269 euros). Also in this case, the South proves to be less salty with Molise trending downward (-0.8%, -166 euros). Silver medal also for Abruzzo, still in deflation (-0.2%, equal to -43 euros). In short, the situation is more worrying in the North than in the South. The fact that poverty is increasing from Rome upwards is an anomaly for the economic history of the country, which is used to being driven by the Northern regions.
Nine years ago the incidence of poverty was more than double in the South compared to the North, while today we have a gap of a couple of percentage points: 10.3% versus 8%). The situation of local administrations is also worrying. As Alessandro Canelli, president of the Ifel foundation, explains (the Anci foundation that deals with local finance) and mayor of Novara: soon over 4,000 small municipalities could be forced to cut services to avoid going belly up. Of these, over 70% are, not surprisingly, in Northern Italy. In particular, cuts are expected for 4,037 administrations out of the 6,600 small Italian municipalities.
The picture of Italians’ purchasing power is therefore bleak. Not only in the North, the cost of living pushes down the quality of life of citizens even further, but the entire population suffers. The data shows that throughout the peninsula, salaries are much lower than inflation. In practice, wages remain at the same level (or almost), but prices continue to rise. According to the latest numbers from the National Institute of Statistics, wages on average last year rose by 3.1%, while real inflation increased by 5.9%. Without considering the Green Deal, the ecological race desired by the EU which will impoverish Italians even further. Just a few weeks ago the European Parliament approved the green homes directive, part of the “Fit for 55” reform package.
The standard aims to reduce harmful emissions in the European Union to reach the goal of zero emissions by 2050 through the redevelopment of Europe’s building stock and the improvement of energy efficiency. All very noble, ok, but who will pay to have an emissions-proof house? Citizens again. The same ones who in the North will pay more expensive eco-friendly renovations, for the same salary. The same goes for the race for electric cars. The good news is that the price of battery-powered cars is the same throughout Italy, except that in the North there is often an obligation to change the car more often to comply with anti-pollution limits and your wallet is grateful.
The article From Bologna to Venice high prices and mini-salaries are devouring the rich North comes from Verità e Affari.