In Italy in the last thirty years, against a lengthening of more than five years in life expectancy at age 60, the average age at retirement in the private sector is estimated to have risen by about two years to around 61. Working life will have to be extended, partly to guarantee an adequate standard of living to the older people of tomorrow.
Moreover, the moderate movements in foreign currencydenominated commodity prices have avoided a sharp increase in import prices; this is in contrast to the period of the mid-2000s that accompanied sharper yen’s depreciation and commodity price surge. Therefore, firms may find it easier to raise their sales prices and wages owing to the healthier prospects for profitability. I will closely watch firms’ pricing behavior.