22 Jan 2025
If you've been knowing the prices in Italy lately, you know that things are changing fast. This year alone, people have seen an increase of at least 20%, with meals now costing 25–30 euros per person! While it can feel like the prices are getting out of hand, there are still many ways to save money, and that's exactly what we're diving into today.
This blog will explore Italy’s cost of living in 2025, from the price of dining out to what has changed in the past year. Just a quick disclaimer: Costs can vary significantly depending on your lifestyle and where you live, such as in a city or town. In general, smaller towns cost less, and prices differ between the North and South of Italy.
Let’s jump in and talk about the average prices of living in bigger cities in Italy like Bologna today!
Dreaming of life in Italy? Whether enjoying a morning cappuccino or finding a place to rent, the cost of living in 2025 has changed. Food, shelter, and gas costs have risen while they still offer beautiful and interesting places such as Italy. Let’s look at what life in Italy might cost you this year.
Let’s start with one of Italy's most significant living expenses: rent. Rental prices have been rising consistently, and this year is no exception. Things are getting more expensive every day.
For example, in Bologna, the price for a studio has risen to €1000 for a single room. Of course, it is possible to find cheaper ones, but they are often situated in less-demand zones or apartments that need redecorating a lot. These places are definitely on the market, but they might not be the most appealing choice unless you’re willing to invest time and effort into a fixer-upper.
For a basic, older studio, expect to pay around €700 to €800 per month, excluding utilities. But if you’re on a tighter budget, you can find studio apartments in Trento, a city in Northern Italy, for €650 per month. These apartments are usually situated in good stations, especially if the apartment is in the city, where the apartments are relatively new.
On the other hand, housing prices in 2025 in cities like Bologna and Florence have higher rental rates. But interestingly, the cost difference between a one-bedroom and a two-bedroom apartment isn’t always significant. For example, you might pay about €1,200 for a one-bedroom apartment in Bologna or Florence, while a two-bedroom could be somewhere between €1,500 and €1,700 per month.
As you can see, the price difference between a one-bedroom and two-bedroom apartment is not as drastic as expected.
Utility bills in Italy have seen a drastic increase, although this doesn’t apply to everyone. If you're moving to Italy and considering renting or buying a place, paying attention to the cost of energy of the building or apartment is essential.
The energy class of a property shows how efficient the energy usage is in that property. These ratings range from A+ (the most efficient) to G (the least efficient), with other classifications in between: A, B, C, D, E, F, and G. Properties with a G rating are the ones that will drive up your utility costs the most.
When you live in a highly energy-efficient apartment, which helps keep your monthly electricity bill low, around €60 to €70. Also, don't rely on gas for heating. This can significantly impact other expenditures, aside from electricity and internet bills.
However, many people who use gas for heating and cooking have witnessed higher bills in even the affordable cities in Italy. On average, those households are expected to spend about €1,700 for gas and electricity this year. In some cases, families estimate their combined yearly bill for electricity and gas to be around €2,300.
If you're planning to drive in Italy, it's essential to understand the current fuel prices to budget effectively. As of December 2024, the average price for a liter of petrol now in Italy is around €1.80, while the price for a liter of diesel is around €1.69.
In Italy, gasoline is most often costlier than diesel. This allows one to have variety while choosing a specific type of car, driving a rented car, or even driving a diesel car.
Italy's fuel prices might fluctuate occasionally, primarily because of global oil prices, taxes, and geographical regions. You should regularly check current prices, and it is wise to download fuel price comparison documents that direct you to stations offering ordinary, diesel, or kerosene at lower prices.
Public transportation is affordable and convenient to get around Italy, particularly in cities like Bologna. In Bologna, one bus ride costs only €1. If you want more savings, don’t hesitate to buy a monthly or annual ticket.
On the other hand, Milan has seen a slight increase in public transport fares this year. A single-ride underground ticket now costs €2.20. Still, monthly and yearly passes are available, so you can save some money using public transportation regularly. It's worth noting that Milan has several limited traffic zones, where only certain vehicles, like electric cars, are permitted. That is why public transportation might seem beneficial if you want to see the city.
Train travel in Italy, particularly on regional and high-speed routes, has become more expensive. Regional trains, typically the most affordable, have seen fare increases of at least 20% this year. High-speed trains, once known for offering discounted tickets if booked in advance, now have fewer options. For example, a year ago, it was possible to find high-speed tickets between Bologna and Florence for €9–€10, but now the lowest price you’ll likely find is €15, only if you book well in advance.
Again, although the cost of living in Italy for expats has slowly increased, using public transport and trains is still one of the best ways to get around. Planning is needed to balance affordable prices and the nearness of the conveyors of these products. If you want to get the most out of your traveling, try to book, take passes, and discover many wonderful and unknown spots in Italy.
For personalized travel tips, recommendations, and custom itineraries, consider seeking expert guidance to plan your ideal Italian adventure. You can experience Italy’s beauty and culture with the right strategy without breaking the bank.
The amount of money customers spend on food and groceries in Italy will depend more on the customers' personal spending requirements. Do you tend to cook the meals at home or order them from restaurants? Concerning your diet, do you take any vegetable products, or do you consume animal products such as meat? They all significantly influence how you come to expend your food allowance.
That said, Italy's average cost of groceries has noticeably risen this year. For instance, a pack of 10 eggs ranges between €2.20. A liter of milk costs between €1.75 and €1, depending on where you buy it. Chicken breast typically costs between €10 and €11 per kilogram if you buy poultry.
For someone who primarily cooks at home and doesn’t eat out often, a monthly grocery budget is roughly €300—cutting down your expenses. Visiting local markets quickly can help you save a good amount of money you might otherwise spend on restaurants. Learning to cook more meals at home in Italy can help you optimize your spending.
Regarding the affordability of eateries, eating out in Italy will be a great experience since there is something for everyone’s pocket and taste. If you're looking for something light and affordable, an aperitivo is a great choice. It’s a quintessential Italian experience where you can enjoy a drink and a small snack for about €6. For a more filling option, some places offer aperitivo buffets with a drink included, costing between €12 and €13.
If you’re planning a proper dinner, costs can vary depending on the city. In Bologna, a meal at a casual osteria will set you back around €25–€30 per person. However, in Venice, a tourist hotspot, €25–€30 might only cover one dish. Naturally, prices tend to climb in more popular destinations, but Bologna, despite becoming increasingly touristy, still offers reasonable dining options.
Street food has also become increasingly popular in cities like Bologna. It’s a budget-friendly alternative for travelers and locals, with various delicious choices that won’t break the bank. Whether grabbing a quick takeaway or enjoying it on the go, street food is a fantastic way to savor authentic Italian flavors without the hefty price tag.
If you’re curious about the best street food spots in Bologna or other Italian cities, exploring online resources or local recommendations can help discover hidden gems. Enjoying Italy’s culinary delights doesn’t have to be expensive—just plan wisely and explore all the options available!
If you’re a coffee lover, Italy is still one of the most affordable places in Europe to enjoy your daily brew. While prices have risen slightly over the years, coffee in Italy remains budget-friendly compared to many other countries.
A cappuccino or Americano will cost around €1.60–€1.80, depending on the café. For those who prefer a classic espresso, you’ll now pay at least €1.20—up from the €1.10 you might have found a few years ago. The price increase in this living expenditure guide in Italy is small but noticeable, varying slightly depending on the location and the establishment.
A typical Italian breakfast often includes a cappuccino paired with a cornetto (a croissant-like pastry), which costs around €1.40–€1.60 in cities like Bologna. This is a little cheaper than expected in other regions of Italy, perhaps slightly lower in the south. Still, in the north and central regions, this is easily acceptable.
For travelers seeking an authentic and affordable morning experience, stopping by a local café for coffee and a pastry is a must. It’s a simple yet delightful way to start your day while immersing yourself in the local culture.
Italy has seen significant changes in the general cost of living in the last year, mainly due to policies formulated in its economy and market forces. Let’s have a look:
With property prices predicted to rise modestly and even higher acquisition costs looming, the decision demands a thorough evaluation.
The choice between leasing and buying space remains critical to business owners. The forecast for 2025 is a slight increase in the price of the property and the warning that it might become even more pricey to purchase a property. However, renting has remained relevant due to the cost of rent in Italy, especially in urban areas, and this is for a good reason.
Italy's inflation rate ticked upward in November 2024, reaching 1.3% from 0.9% in October, while the country's central bank revised its economic growth projections downward for the current and next year.
As of November 2024, Italy's inflation rate increased to 1.3% from 0.9% in October, indicating a gradual rise in the general price level of goods and services.
According to the country's central bank, the Italian economy is projected to grow by 0.7% this year and next. However, the bank revised its October estimates downward due to weakening data.
The 2025 Italian budget proposes significant policy shifts, including increased spending to combat low-wage work and a doubled flat tax on foreign income for wealthy new residents.
New measures to eradicate low-wage working through taxation and social security. To finance these programs, the government proposes increasing next year’s deficit to 3.3 percent of GDP compared with an estimated 2.9%.
The flat tax on foreign income for new residents has doubled from €100,000 to €200,000. This adjustment addresses rising living costs and real estate prices attributed to an influx of wealthy expatriates.
Italy is considering a new tourist tax of €5 to €25 per night to combat over-tourism and fund local initiatives, such as improved waste management.
Italy is considering implementing a new tourist tax to combat over-tourism. The proposed levy would charge holidaymakers between €5 and €25 per night, depending on their accommodation's cost as cost of living in Italy goes higher. This fee would be paid directly to accommodation providers and is intended to support local issues like waste management.
Things seem to change almost every month, don’t they? It’s not just an Italian thing—it’s happening everywhere!
If you're looking to save a little and budget in Italy as an expat, keep an eye on local deals, cook more at home, and explore street food for a budget-friendly meal. When it comes to send money internationally, use ACE Money Transfer. It offers lower fees and competitive exchange rates than many other services and helps you save a bit extra when sending money abroad. It's always great to have a money-saving strategy in place. The good news is that Italy still offers plenty of affordable options if you know where to look.
High rates of living in Italy include increases in house rent, the cost of electricity, water, and other utilities, and the cost of living necessities such as food and transportation.
Choosing to cook your meals, sourcing food from local markets, and trying street foods and Aperitivo are some tips that can save you money while in Italy.
The average price for a liter of petrol is around €1.80, while diesel costs approximately €1.69 per liter.
Cost of housing continues to rise, inflationary trends are slowly scaling up, there are unpredictable government policies which can affect cost of living , and a potential new tourist tax could increase travel costs.
Utilizing public transportation, seeking energy-efficient housing, enjoying free activities, and using money transfer services like ACE Money Transfer are effective strategies for saving money in Italy.
