This spring, the long weekends of April 25th and May 1st, traditionally moments of leisure and relaxation, risk costing Italians 10.5% more than the previous year. A significant increase that impacts numerous sectors, putting a strain on families’ portfolios in a period of economic recovery that is still uncertain.
Let’s see, in detail, what the expected and announced increases are
Prices increasing from April 25th to May 1st
According to estimates by Assoutenti, the Consumer Protection Association, the price increases expected for the 25 April and 1 May long weekends they involve a wide range of services and goodsboth for those who opt for a short holiday away from home and for those who decide to stay in the city.
The president of the association, Gabriele Melluso, has in fact warned that “spring long weekends will cost Italians around 10.5% more than last year, resulting in an increase in consumption equal to hit by around 780 million euros on who will travel in the next few days.”
The sectors affected by price increases
But where exactly will these increases be felt? According to the analysis done, the tourism sector is among the most affected. Holiday packages have in fact recorded an increase of +8.2% on an annual basis, while hotels and other hospitality facilities have adjusted their rates by +6.9% and +8.4% respectively. Significant increases were also recorded in air and rail transport, with domestic flights rising by +19.1% and train tickets rising by 8%.
The price increase will also affect those who prefer to travel by road. The cost of fuel, petrol and diesel is in fact constantly rising, with an increase of +8.3% since the beginning of the year, weighing on the budgets of Italian families.
Finally, those who decide to stay in the city will also have to deal with the price increases. Dinners and lunches in restaurantsfor example, will cost 3.8% more than the previous year, while amusement parks, museums and monuments will record an increase of +4%, +3.7% and +3.7% respectively.
Impact on the economy and families
The cumulative effect of these increases is destined to put a strain on the budgets of Italian families. While on the one hand the Italian economy will benefit from an increase in tourist flows, on the other citizens will be forced to tighten their belts at a time when signs of economic recovery are still fragile.
Why are prices increasing in Italy?
Price increases in Italy are the result of several factors that converge and influence the entire national economy. Among these, for obvious reasons, it plays a crucial role inflation, or the general increase in the prices of goods and services, which is one of the main drivers of the increase in the cost of living. This means that consumers have to pay more for the same goods and services, reducing the purchasing power of money.
Another component not to be underestimated it is the balance between supply and demand of certain goods and services. For example, in the tourism sector, if there is high demand for hotel rooms during holiday periods such as the April 25th and May 1st long weekends, hotels may increase rates to capitalize on this high demand. In other words, they try to maximize their profits by increasing prices.
When will prices decrease in Italy?
Predicting exactly when prices will decrease in Italy is difficult, since depends on a series of economic, political and social factors continuos changing. However, there are some general considerations that can be made, starting from the inflationary push. Indeed, if inflation stabilizes or decreases, we are likely to see a moderation in prices. As a result, if production costs, such as wages and raw material prices, stabilize or decline, a decrease in retail prices may also occur.
In the short term, if the supply of goods and services exceeds demand or if demand decreases, prices may decrease to encourage purchases. So, for example, you are likely to leave immediately after the long weekend of April 25th or immediately after the long weekend of May 1st costs tend to be lower precisely because there will be less demand for accommodation facilities and travel-related services.
