Indice ISTAT (ISTAT Index for Inflation)

The consumer price index published by ISTAT (the Italian National Statistics Institute) used for various inflation adjustments. In real estate, the Indice ISTAT FOI (Families and Employees index) is commonly referenced in rental contracts for annual rent increases. Many lease agreements allow the landlord to raise the rent each year based on 100% or 75% of the ISTAT cost-of-living index change. This index is published monthly. So, if inflation was 2% in the past year, the landlord might apply a 2% increase to the rent (if the contract permits full adjustment). Cedolare secca contracts, by law, cannot be increased via ISTAT during their term (the rent remains flat). The ISTAT index is also used in updating some contract penalties or construction costs in long-term contracts.