Once a year the Bank of Italy and Istat publish on their respective websites a report on real and financial wealth in the country. They have done so these days and - among the many news items - the main one is that inflation has eaten up a substantial slice, namely 12.5 percent, of household wealth. According to data updated to the end of 2022, net wealth has also fallen in relation to gross disposable income: this has happened in several advanced economies, but only in Italy has it returned to 2005 levels. Also losing appeal is the stock market, down after three years of growth. Households have reported losses resulting mainly from devaluation of insurance reserves, mutual fund shares, stocks and bonds. Growth in deposits has fallen dramatically, but corporate debt has declined, now standing at 49 percent of real assets, a figure in line with that of other countries. The drain in household balance sheets has been partially buffered by the increased value of housing and non-financial assets more generally. The value of homes rose by 2.4 percent in one year, thanks to what the Bank of Italy calls "brisk buying and selling activity" and thanks in part to government-sponsored housing renovation.
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