In its ‘Atlas of Children at Risk in Italy’ report, the charity said 1,434,000 children were in absolute poverty in 2013 - 90,000 more than figures recorded in 2012.
The figure is equal to four percent of the total population of children in Italy, with the most deprived living in the south.
More than 65,000 families were evicted from their homes in 2013 for failing to pay the rent, while one in four children live in poor conditions, the report found.
Sixty-eight percent of households were also forced to cut spending on food last year, while simple pleasures for children, including hobbies, sports and travel have also been cut.
The report also said that in Italy’s largest cities resources for children, such as safe places to play, continue to decline.
Meanwhile, 3.2 million children, aged six to 17 years, had not read a book in 2013, while four million had not visited a cinema or museum.
Valerio Neri, the general director of Save the Children Italy, said the current situation is "pushing more children to the margins".
"Our children’s horizons are increasingly declining," he added in a statement.
"With fewer spaces available for autonomy, playing, socializing and learning."
He added that many of Italy’s suburban areas, which are increasingly inhabited by young couples with children, are deprived of green areas, efficient transport and day schools.