Italy cost of living 2022: from utility bills to mortgages, all the increases that will affect Italian households

2022 will be remembered as another difficult year for Italian households. After two years of pandemic, inflation and now the war in Ukraine, a chain of new increases have been triggered, ranging from the price of raw materials to electricity and gas bills, not to mention petrol, mortgages, current accounts, bread and pasta and even the much sought-after sunflower oil. Let's take a look at all the cost of living in Italy in 2022 with the price increases that will affect Italian households according to the price comparison website Facile.it.

Electricity and gas bills in Italy go through the roof

The increase in electricity and gas prices that has led to skyrocketing bills is staggering, with prices already seeing 80% increases compared to 2021. This is according to calculations made by Facile.it in January, when there was no reason to believe there would be an invasion of Ukraine, a situation which is causing bills to rise even further. At the same level of consumption compared to last year, Italians could pay as much as 3,000 euros more than in 2021. This is why it is essential to try to save as much as possible by making intelligent use of household appliances.

Petrol and diesel prices in Italy

The rising costs of petrol and diesel are another very sore point across Europe. In the first two months of 2022, Italian households spent 22% more than in 2021 on refuelling their cars, a figure that emerges from simulations carried out by Facile.it based on research data. In recent weeks, with the worsening of the situation in Ukraine, the price of fuel has risen so much that Italians have spent an average of 275 euros to fill up a petrol car (compared to 228 euros last year), while those with a diesel car have spent 245 euro (compared to 199 euros in 2021).

A slight breath of fresh air should come from Italy's recently announced energy decree, which has detailed a cut in excise duties. The reduction amounts to 25 cents for petrol and diesel, plus 22% VAT. 

Current accounts

Italy is also experiencing increases and price rises in current accounts in 2022. Facile.it, has examined the ICC (Indicator of Total Costs) of current accounts offered by the six leading banks in Italy and compared the values with those seen in October 2021. The costs of current accounts with over-the-counter operations have increased by 21% for all types of customers.

Raw materials

Even before the outbreak of the war in Ukraine, Ance reported an increase in the price of raw materials for construction. By November 2021, iron and steel had increased by 226.7% in one year. The construction industry is however facing a much more serious situation thanks to the war and is warning of the possible closure of building sites.

Mortgage increases in Italy

Rising inflation has already had an effect on mortgages and the situation has worsened with the outbreak of war. Interest rates are on the rise, and on the day of the invasion alone, the reference index for fixed-rate mortgages exceeded 1.

Bread and pasta

As far as bread and pasta prices are concerned, producers have already informed large retail chains that they must prepare for a new wave of price increases in pasta, flour, bread and pastry products. This is because both Ukraine and Russia are among the top wheat exporters in the world, and a significant percentage of the wheat imported to Italy comes from this part of the world. Experts have stated that supply issues are already having an effect on prices.

Sunflower oil

Sunflower oil, of which Ukraine and Russia are also the world's two largest producers, has become the most sought-after product in supermarkets. According to Carlo Tampieri, president of ASSITOL's Seed Oils Group, if the conflict continues, the situation could become even more complicated because the planting, scheduled for spring, could potentially be cancelled.