Inflation: how much it erodes savings sitting in the bank
A euro in your account stays a euro, but buys less each year. After the 2022 peak the effect was visible to everyone: here are the numbers.
The ISTAT numbers
The average annual change in consumer prices (NIC index) was:
| Year | Average annual inflation |
|---|---|
| 2022 | 8.1% |
| 2023 | 5.7% |
| 2024 | 1.0% |
| 2025 | 1.5% |
2022, at +8.1%, was the biggest rise since 1985, driven mainly by energy prices. Inflation then came back down, but prices did not go back: they stay at the higher level reached.
What idle savings are worth today
Compounding the four years, prices rose by 17.1% in total. In euros:
- €10,000 left idle since the start of 2022 now has the purchasing power of about €8,537 of that time: a real loss of roughly €1,463.
- To buy what cost €10,000 at the start of 2022, you now need about €11,714 at the end of 2025.
If the account paid something, the loss is smaller: the real effect depends on what your account yielded, net of tax. But for anyone left with returns near zero, the loss is as above.
Why it matters if you plan
- Future spending grows. If you spend €2,000 a month today, at 2% average inflation you will need about €2,972 after twenty years for the same standard of living. This is an example: real inflation is not constant.
- The INPS pension is indexed, but not always in full. Indexation protects to different degrees depending on the size of the pension.
- The capital to live off investments must grow at least as fast as prices, otherwise every withdrawal erodes purchasing power. See living off investments: how much you need.
What it does not mean
It does not mean holding cash is wrong: it is needed for emergencies and near-term expenses (see the emergency fund). It means cash you will not need for years has a hidden cost, and that cost should be weighed against the risks and returns of the alternatives. The cost of waiting calculator helps you see what happens over the long run.
Sources
- ISTAT, Consumer prices, December 2025: +1.5% in 2025, +1.0% in 2024
- ISTAT, Consumer prices, December 2022: +8.1% in 2022
- ISTAT, inflation archive: +5.7% in 2023
Try the tool: The cost of waiting to invest. The cost of delaying your investments, in euros and in years of work.
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Book a free callFor information and education only. This is not investment advice or a personal recommendation. Tax and pension rules change over time: always check current requirements with official sources (INPS, Agenzia delle Entrate).