by Emilia Beria d’Argentine
The three signs that threaten the savings of Italian families to keep an eye on, to truly protect your savings.
While everyone is talking about the “improvement” of inflation, the data hide an uncomfortable truth that few know. Italian inflation fell to 1.7% in May 2025, but behind this apparently reassuring figure are three alarms that continue to silently erode the purchasing power of Italian families.
- Food prices are growing at 3% per year. Those 100 euros spent two years ago are no longer enough today.
- Companies are passing the costs on to consumers. Economic instability translates into higher prices for everyone.
- ECB rates at 2% do not protect savings. Bank deposits lose purchasing power every day.
The fundamental question to ask in all this then is: “How to really protect savings from this silent erosion?”
Inflation continues to be a central theme in the Italian economy in 2025. Despite signs of improvement compared to the peak of 2022-23, it remains a phenomenon to be monitored carefully to protect one’s assets. In May of this year, inflation in Italy stood at 1.6%, down from 1.9% in April (source ISTAT), but this does not mean that we can lower our guard.
In this article we want to clarify and contribute to understanding:
- What inflation really represents today
- The 3 warning signs to keep an eye on
- A concrete solution to protect ourselves and our families
Inflation is the general and continuous increase in the prices of goods and services in an economy. Although current levels are lower than in previous years, the impact on household purchasing power remains significant.
Here are the 3 warning signs to keep an eye on to avoid falling victim to inflation
1. Decrease in purchasing power on essential goods
Food prices continue to rise at a sustained pace: food inflation in February 2025 increased by 2.6%, while in April there was a 3.0% growth on food products (source Il Sole 24Ore). This means that, despite general inflation being under control, basic necessities continue to grow and weigh more and more on the family budget.
With the same 100 euros that were spent on groceries two years ago, today you can buy fewer products. We are forced to make choices that we did not have to make before and adopt purchasing strategies. “The branded product or the cheapest one?”, “What should I give up to save money?” This impact does not only affect food, but also other essential goods and services.
- Energy Costs. Energy prices accelerated by 3.2% in March 2025.
- Rentals. Rental costs continue to rise, absorbing an ever-increasing percentage of family income.
- Health Services. Medical expenses increase, making access to care more expensive.
2. Economic Instability and Market Volatility
Even if contained, inflation continues to create economic uncertainty. This uncertainty makes markets volatile and negatively impacts investment decisions. Companies struggle to plan stable prices for their products and services, and when a company faces ever-increasing production costs, it essentially has two options:
- Reduce profits (often an unsustainable solution)
- Increase prices for consumers
The result? Higher prices that continue to burden Italian families.
3. Effects of interest rate changes
In June 2025, the ECB cut interest rates again by 25 basis points, bringing the deposit rate to 2% and the main refinancing rate to 2.15% (source Il Sole 24Ore). While this may seem like good news at first glance, the reality is more complex.
- For mortgages
Despite the ECB cut, rates on variable mortgages have fallen below 3%, but they still remain at levels that significantly impact the family budget (source MutuiOnline). - For savings
Lower rates mean lower returns on bank deposits, which often fail to even cover real inflation. - For investments
The volatility of rates makes it difficult to plan long-term investment strategies.
The solution: diversify with safe havens
In this scenario, it is essential to protect your savings through a diversification strategy that includes historically tested safe havens. Physical gold has always represented a protection against inflation and economic instability. It is a scarce resource, whose demand tends to increase in times of uncertainty.
Why Gold Remains a Strategic Choice
- Inflation Protection. Historically, gold has maintained its purchasing power over the long term.
- Portfolio Diversification. It is not correlated to the performance of stock or bond markets.
- Tangible Asset. Unlike financial investments, gold is a physical asset that you can own directly.
Attention to Quality and Safety
Not all gold is the same and to ensure a safe investment it is essential to follow the 4 CAPITAL RULES.
- Buy certified and high purity gold.
- Trust qualified and transparent operators.
- Verify ethical mining certifications.
- Ensure that the gold is stored in safe and insured vaults.
Inflation in 2025 continues to pose a silent threat to the savings of Italian families. Recognizing the warning signs and acting promptly is essential to protect your assets.
Starting today to build a savings protection strategy, which includes time-tested safe haven assets is essential; doing so with physical gold becomes the only real solution.