Over 25 years, the most unavoidable item in the household budget has also risen the fastest: housing and utilities now cost up to 120% more than they did in 2000. This is the clear picture emerging from Istat data collected in Storie di dati and analysed by Codacons, Italy’s consumer association.
The message is hard to ignore: price rises have hit hardest in the areas where households have little room to cut back. Average spending rose by 63% between 2000 and 2025, but the average conceals much sharper increases in housing, utility bills and food.
What the figures show: prices up 63% between 2000 and 2025
Istat’s figures cover a quarter of a century in which the consumer price index rose by an average of 63%. Yet the make-up of that rise matters more than the headline figure itself. Everyday essentials, including housing and household utilities, have increased more quickly than the average, leaving less room for all other spending.
Underlining the concern, Codacons notes that the increase has mainly affected households’ basic needs rather than expenditure that can be reduced more easily. The practical message is clear: price trends need to be considered category by category, rather than only in general terms, because the effect on purchasing power varies considerably according to the type of expense.
Housing and utilities: the category that has doubled
Within the “housing and utilities” category, the increase reaches its peak: up to 120% over 25 years. This is where household budgets face the greatest pressure, since these are recurring and largely unavoidable costs.
The data puts the impact of utility bills in recent years into context and helps explain why energy has returned to the centre of the economic agenda. For tenants and for those facing regular household running costs, this trend has a direct effect on the ability to save and plan larger purchases.
The shopping basket: food up 90% and other rises above 100%
The weekly shop has offered little relief: food prices have risen by 90% since 2000. This comes alongside increases above 100% in categories including alcohol, tobacco and financial services. These figures help explain the widespread feeling of leaving the supermarket with fewer bags than before. They also show how regular spending has eroded purchasing power, even when nominal income has risen.
Not every category has followed the same pattern, however. Increases in essential services such as education and healthcare have remained below 30%, pointing to differing trends that matter when assessing the overall cost of living.
Why services and goods are moving at two different speeds
Over the long term, the gap between the price of services and the price of goods has widened. Since the mid-1950s, goods prices have risen by around 30 times, while service prices have increased by about 60 times. Istat attributes the difference to productivity and competition. The goods sector has benefited from more efficient production processes and greater exposure to international competition, which has helped limit price increases.
Energy shocks: the 2022 surge and why its impact was different
Energy trends have had a decisive impact. In 2022, Istat reports that the increase in consumer energy prices was even greater than the inflationary spikes of the 1960s. Even so, the overall effect on the economy was more limited than during the major oil crises of the past.
Analysts point to the shorter duration of the peak and the macroeconomic context, as well as the absence of wage-indexation mechanisms that once fuelled a wage-price spiral. Over the past three years, despite easing inflationary pressures, prices have remained high, cementing a large part of the increases throughout household cost chains.
Risks and uncertainty in 2026: what Istat and Codacons are highlighting
The consumer association warns that the situation could worsen in 2026, particularly if energy tensions do not ease. Istat’s assessment also calls for caution: energy shocks remain the key variable capable of reigniting price rises quickly.
International instability and the situation in the Persian Gulf are, in particular, creating uncertainty over energy costs, with potential knock-on effects for household spending and services connected with housing.
Without wage indexation, any new spikes in energy prices would tend to fall more directly on household budgets. For this reason, energy risk should be treated as an element to monitor in the coming months when planning household spending and domestic contracts.
