Italian Inflation Rate Inches Higher

Italy’s annual inflation rate edged down to 1% in January 2026 from 1.2% in the previous month, in line with market expectations, preliminary estimates showed. It marked the lowest reading since October 2024, following the adoption of the ECOICOP version 2 classification and a new 2025=100 reference base for consumer prices. Prices for food products rose at a faster pace, supported by both unprocessed (2.5%) and processed (2.2%) items. Costs also accelerated for housing-related services (4.4%), tobacco (3.3%), and recreational, cultural, and personal care services (3%). On a monthly basis, consumer prices increased marginally to 0.4%, from 0.2% in December, matching market expectations. The core inflation rate, which excludes energy and fresh food, held steady at 1.8%, while the measure excluding energy alone was 1.9%. The EU-harmonized inflation rate eased slightly to 1% in January 2026, from 1.2% in the previous month.

The annual inflation rate in Italy edged higher to 1.2% in December 2025 from 1.1% in the previous month, in line with preliminary estimates and initial market expectations. Price growth accelerated for transport services (2.6% vs 0.9% in November), unprocessed food (2.3% vs 1.1%), and miscellaneous services (2.2% vs 2%). On the other hand, inflation slowed for non-durable goods (0.6% vs 1%) and recreational, cultural, and personal care services (2.7% vs 3%), while costs declined sharply for regulated energy prices (-5.2% vs -3.2%). Meanwhile, core inflation stood at 1.7% in December, unchanged from the previous month. On a monthly basis, consumer prices rose 0.2%, rebounding from a 0.2% fall in November and matching preliminary estimates and market expectations. The harmonised consumer prices increased 1.2% year-on-year, and grew 0.2% on a monthly basis.

The annual inflation rate in Italy rose to 1.2% in December of 2025 from the 13-month low of 1.1% in November, slightly ahead of market expectations that it would remain at 1.1%, according to a preliminary estimate. Inflation was higher for transportations services (2.6% vs 0.9% in November), fresh food (2.3% vs 1.1%), and processed food (2.6% vs 2.1%). These were partially offset by higher deflation for regulated energy (-5.3% vs -3.2%) and slower price growth for recreational, cultural, and personal services (2.7% vs 3%). The core inflation rate, which the commonly exogenous parts of the consumer basket in energy and fresh food, rose to 1.8% from 1.7%. Meanwhile, the EU-harmonized inflation rate also rose to 1.2% in the period, remaining firmly above the European Central Bank's target of 2%.