Italian Inflation Rate Climbs to 1-1/2-Year High

Italy’s annual inflation rate accelerated sharply to 2.7% in April 2026, up from 1.7% in March and just below the preliminary estimate of 2.8%. This marks the highest level since 2023, driven largely by a strong rebound in energy prices (9.2% versus -2.1%), in both regulated (9.6% versus -2%) and unregulated (5.3% versus -1.6%). Goods inflation accelerated to 3.1% from 0.8% in March, supported by faster growth in unprocessed food prices (5.9% versus 4.7%). In contrast, services inflation slowed (2.4% versus 2.8%), reflecting slower price increases for recreational, cultural, and personal care services (2.6% versus 3%) and transports (0.6% versus 2.2%). Meanwhile, annual core inflation slowed to 1.9% from 2.1%. Harmonized inflation (HIPC) accelerated (2.8% versus 1.6%). On a monthly basis, consumer prices rose 1.1%, slightly below estimates of a 1.2% rise but up notably from 0.5% in March, marking the strongest monthly increase since October 2022.

Italy’s annual inflation rate rose sharply to 2.8% in April 2026, up from 1.7% in March and above market expectations, according to preliminary estimates. This marking the highest level since 2023, as increasing energy prices reflect Italy’s reliance on imported gas for electricity and heating, with prices rebounding for both unregulated (9.9% vs -2%) and regulated (5.7% vs -1.6%). Goods prices surged (3.2% versus 0.8%), as unprocessed food inflation accelerated to 6% from 4.7%. Services' inflation slowed (2.4% vs 2.8%), easing for recreational, cultural and personal care services (2.6% vs 3%) and transportation (0.5% vs 2.2%). In contrast, housing-related inflation edged up (2.5% vs 2.2%). Core inflation, which excludes energy and fresh food, eased to 1.6% from 1.9%, while inflation excluding energy alone slowed less to 2% from 2.1%. The HIPC increased 2.9% year-on-year and 1.7% month-on-month. On a monthly basis, consumer prices increased 1.2%, the highest level since October 2022.

Italy’s annual inflation rate rose to 1.7% in March 2026 from 1.5% in February, confirming the preliminary estimate. This marks the highest reading since July last year, driven mainly by energy, with regulated energy easing less sharply (-1.6% vs -11.6% in February) and unregulated energy also declining more slowly (-2.0% vs -6.2%). Inflation for unprocessed food also accelerated to 4.7% from 3.7% previously. Meanwhile, services inflation slowed notably (2.8% vs 3.6%), including recreational, cultural, and personal care (3.0% vs 4.9%) and transport services (2.2% vs 2.9%). On a monthly basis, consumer prices rose 0.5%, slowing from a 0.7% increase in February. Core inflation, which excludes energy and fresh food, eased to 1.9% from 2.4%, while inflation excluding energy alone slowed to 2.1% from 2.5%. The HICP increased 1.6% year-on-year and 1.7% month-on-month.