The year is marked by widespread bread riots all over Italy. The tariff on the duty on imported wheat is lowered from 75 lire a tonne to 50 lire. In 1897 the wheat harvest in Italy was substantially lower than the years before; it fell from on average 3.5 million tons in 1891–95 to 2.4 million tons that year. Moreover, import of American grain was more expensive due to the Spanish–American War in 1898. Wheat prices in Milan increased from 225 lire a tonne to 330 lire a tonne in April 1898. In order to try to diminish the rising prices the government of Antonio Di Rudinì was urged to abolish the duty on imported wheat. The lowering of the tariff is generally considered to be too little and too late. Street demonstrations demanding "bread and work" began in the South of Italy, which already had seen widespread revolts by the Fasci Siciliani in 1893–94. In towns like Bari and Naples rioting could be suppressed, while Florence was controlled by demonstrators for a whole day. The situation escalated when demonstrators were shot by nervous policemen, and rioting increased. The Finance Minister in the administration of Prime Minister Antonio di Rudinì, Luigi Luzzatti, passed two measures of social legislation in 1898. The industrial workmen’s compensation scheme from 1883 was made obligatory with the employer bearing all costs; and a voluntary fund for contributory disability and old age pensions was created. 'O sole mio the globally known Neapolitan song is composed. Its lyrics were written by Giovanni Capurro and the music was composed by Eduardo di Capua.
January 17–18 – Two days of bread riots in Ancona after a demonstration of women demanding a reduction in the price of bread.
February
February 27 - To annihilate the Sicilian Mafia, Italian troops arrest 64 people of Palermo. In a series of reports between 1898 and 1900, Ermanno Sangiorgi, the police chief of Palermo, identified 670 mafiosi belonging to eight Mafia clans that went through alternating phases of cooperation and conflict.
April
April 27 – Bread riots start in Bari, where a mob of 2,000 attacks the tax office. The riots expand to many parts of Italy, with several people killed. In Naples, women lead the mobs carrying loaves of bread or red flags on long staves.
May
May 7–9 - Bread riots in Milan, Florence and Livorno, in which many people are killed. Martial law is proclaimed. The Bava Beccaris massacre, named after the Italian General Fiorenzo Bava Beccaris, quells widespread riots in Milan. On May 9, 1898, the troops used artillery to breach the walls of a monastery outside Porta Monforte, but they found inside only a group of beggars who had come to receive assistance from the friars. According to the government, there were 118 dead and 450 wounded. The opposition claimed 400 dead and more than 2,000 injured people. Filippo Turati of the Italian Socialist Party was arrested, accused of inspiring the riots. In July 1900, KingUmberto I of Italy was assassinated by the anarchist Gaetano Bresci who claimed to avenge the victims of the repression and the offense given by the decoration awarded to General Bava Beccaris.
May 14 - Bread riots continue in various areas in Italy, such as Naples and Pontedera, with several people killed.
May 28 - Fall of the administration of Antonio di Rudinì following the May massacres in Milan. Indignation at the results of his policy against the uprisings in May left him without support of both the Left – who blamed him for the bloodshed – and the Right – who blamed him for the permissiveness that allegedly had promoted the uprisings and led to his overthrow.
June
June 18 - The recently reformed new administration of Antonio di Rudinì resigns.