The burden of compulsory expenditure on Italian families remains substantially stable at around 42%, a value that has not changed much compared to 2023 and which represents an increase of over 5 percentage points compared to 1995. This year, on an average per capita expenditure of around 21,800 euros, over 9,000 euros are allocated to compulsory expenditure, with an increase of 348 euros compared to 2019. Among these, the main item is represented by housing expenditure, which amounts to 4,830 euros. Within this category, expenditure on energy, gas and fuel, although in constant decline since 1995, constitutes a significant portion with 1,721 euros.
The increase in the burden of obligated expenditure is amplified by the trend in prices, which have seen a significantly higher growth than other goods and services. Between 1995 and 2024, the price index for obligated expenditure increased by 122.7%, more than double the 55.6% for tradable goods. This gap is accentuated by limited competition among suppliers of obligated goods and services.
The annual analysis by the Confcommercio Research Office highlights how inflation and the reduction in quantities purchased contribute to the overall increase in compulsory expenses in the family budget. Traders do not expect a return to the 40% level of compulsory expenses recorded in 2019. The share of compulsory expenses has gone from 41.5% in 2023 to the current 42.2%, with a slight reduction expected to 41.8% for 2024.
For the next two years, the share of tradable goods is estimated to exceed 21%, thanks to tourism activity and the presence of Italians and foreigners in Italy. However, the tradable goods sector, which includes most physical stores, will continue to decline, putting pressure on local commercial structures, especially in historic centers. Furthermore, the continued development of online commerce will contribute to this trend.
“Forced expenses, especially those related to housing, increasingly penalize family budgets and consequently reduce consumption – comments Carlo Sangalli, president of Confcommercio – Consumption that is the main component of internal demand. To support them, it is necessary to confirm the consolidation of Irpef rates and progressively reduce, in a structural way, the tax burden”.
Consumption of obligated goods at constant prices tends to decline, starting with energy. While obligated expenditures include basic needs such as healthcare, it is clear that long-term trends, such as population ageing, require investment and adequate governance to ensure that essential expenditures, such as healthcare and housing, are accessible to all.
