In a time of soaring inflation and economic instability, Italian families are finding relief through e-commerce, according to a new study conducted by The European House—Ambrosetti in collaboration with Amazon.

The research delved into the financial pressure experienced by Italians in 2022, where inflation peaked close to 12 per cent, leading to a significant decrease in discretionary spending, particularly among less fortunate families. Absolute poverty levels also rose, with an additional 300,000 families registering in 2022 compared to the previous year.

Inflation is the foremost concern for a majority of Italians, with nearly 90 per cent of survey respondents affirming that their purchasing power had dwindled over the past year, as per the Ambrosetti study.

Interestingly, the study shed light on the positive influence of online commerce in this challenging economic context. Respondents expressed that e-commerce has enabled access to more competitively priced items, along with a wider variety and availability of goods.

These perceptions were corroborated by the economic-statistical analysis executed by Ambrosetti. The study utilised Italy's first-ever database that tracked the evolution of prices for goods sold via e-commerce over time, in comparison to the general price index of a typical Italian household's basket of goods, as determined by Istat (Italian National Institute of Statistics).

The results showed that online prices in Italy have remained more stable during periods of high inflation, accounting for approximately €40 billion in purchases over the past three years. The research also demonstrated that for every one-percentage point rise in prices, e-commerce effectively mitigated inflationary pressure by minus 0.02 points, while still contributing to an increase in consumption (up €845 million).

Remarkably, if not for the extensive use of e-commerce, inflation over the past six years would have been, on average, 5 per cent higher. Furthermore, e-commerce use contributed to an additional €1 billion in discretionary spending for Italian households between 2020 and 2022, signalling the sector's pivotal role in curbing the inflationary impacts on consumers.

Fibre2Fashion News Desk (DP)

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