Governments have tools they can use to make this spiral go up or down. The current direction and velocity of the spiral are policy choices. The most basic one would be the interest rate (not available to Italy because of the Eurozone)
What other tools are there available? I believe increasing minimum wage, punishing (through tax) rent seeking would also be viable.
Increasing minimum wage only works if employer surplus is already high. But you can put various controls on rent and building, and you can encourage local production.