It can, depending what is causing the itchy skin. If it is Eczema, it can spread to other parts of your body and cause discomfort. In that case it is best to be under a doctor's care. Or it could be caused by a food or material allergy, which would call for a doctor's appointment.
For just dry skin, especially in cold weather, it is best to wash the dry area with a moisturizing soap and warm (not hot) water, lightly pat dry and then apply a good quality moisturizer or oil. Neutrogena has an excellent body oil that is a light sesame formula. It is lightweight and absorbs quickly leaving your skin soft and moist.
I hope this helps. :-)