In July 2024, the number of employed individuals in Italy exceeded 24 million, with an increase of 9,000 compared to the previous month. This growth was primarily driven by an increase in self-employed individuals, totaling 5,233,000, while the number of permanent and temporary employees decreased to 16,019,000 and 2,757,000, respectively. Compared to July 2023, there was a total increase of 490,000 employed individuals, including 437,000 permanent employees, 249,000 self-employed individuals, and a decrease of 196,000 temporary employees. The monthly employment rate increased to 62.3%, while the inactivity rate reached 33.3%, and the unemployment rate decreased to 6.5%, according to the analysis by Istat.
In August, the prices of food, household, and personal care products in Italy increased by 0.9% compared to the previous year, according to a preliminary estimate by Istat. The prices of essential items in the shopping basket, such as food, accelerated on a year-on-year basis from 0.7% to 0.9%, while the prices of high-frequency purchase products decelerated from 1.8% to 1.1%. The increase in the prices of processed food products contributed to the acceleration in the overall inflation rate, with services also experiencing price increases due to disruptions in the aviation sector. Inflation excluding volatile items rose to 2.0% in August, up from 1.9% in July, reflecting the overall trend in the Italian market.
The overall prices of food items in Italy slightly accelerated in August, from 0.9% to 1.0%, showing divergent trends in its sub-components. Processed food prices experienced a moderate acceleration from 1.6% to 1.8%, up by 0.9% from July, while the prices of non-processed food items continued to decline slightly from -0.4% to -0.5%, with a decrease of 0.6% compared to the previous month. Specifically, the prices of fresh and refrigerated fruits decreased from -2.4% to -2.8%, with a further decline of 3.7% from July, while the prices of fresh or refrigerated vegetables, excluding potatoes, decreased from -3.3% to -3.9%, with a 0.4% decrease on a monthly basis.
In conclusion, the employment rate in Italy experienced growth in July 2024, exceeding 24 million employed individuals, with an increase in self-employed workers and a decrease in permanent and temporary employees. In August, the prices of food and essential items in the shopping basket increased slightly on a year-on-year basis, while high-frequency purchasing products saw a slowdown in price increases. Overall, the inflation rate in Italy rose to 2.0% in August, driven by higher prices of processed food items and services. It will be important to monitor these trends in the coming months to assess the overall economic stability in Italy.
