Although contract wages increased in real terms for the second consecutive year in 2025, Italian people's purchasing power is still 8.6% lower than it was in 2019, Istat said in its annual report on Thursday.
    The national statistics agency added that the energy price shock triggered by the Iran war and the consequent rise in inflation could "slow down the recovery or even determine a new period of loss of purchasing power, depending on the duration of this scenario".
    It said the cost-of-living crisis was not just affecting the poor, with 16.1% of middle-class households saying that they have difficulty making their salaries last until the end of the month.

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