Italian Inflation Rate Inches Higher

The Italian headline inflation rate accelerated to 3.2% in May 2026 from 2.7% in April, in line with the preliminary estimate and marking the highest level since September 2023. The pickup was consistent with trends seen across other major Eurozone economies, as constrained oil and gas supplies following the outbreak of conflict in the Middle East pushed up energy prices for importing countries. Prices of non-regulated energy surged (12.5% vs 9.6% in April), as did regulated energy (5.6% vs 5.3%). Inflation also rose for transport-related services (1.7% vs 0.6%) and recreational, cultural, and personal care services (3.0% vs 2.6%). Core inflation edged higher to 1.7% from 1.6%, while inflation excluding energy alone accelerated to 2.1% from 1.9%. On a monthly basis, the CPI increased by 0.4%, following a 1.1% rise in April. The HICP also rose 3.2% year-on-year, after 2.8% in April, and increased 0.3% on the month.

The Italian headline inflation rate rose to 3.2% in May of 2026 from 2.7% in the previous month, aligning with the market consensus to mark the highest inflation rate since September of 2023. The increase was consistent with that from other large Eurozone economies as tight oil an gas supply since the outbreak of war in the Middle East lifted price growth across energy importers. Prices accelerated for both non-regulated energy (12.6% vs 9.6% in April) and regulated energy prices (5.8% vs 5.3%). Likewise, inflation was higher for transportation services (1.8% vs 0.6%) and recreational and cultural services (3% vs 2.6%). Core inflation, which excludes food and energy prices, rose to 1.8% from 1.6% in the earlier period. From the previous month, the Italian CPI rose by 0.4%, slowing from the 1.1% increase in April.

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.