Italian Inflation Rate Hits 15-Month Low

Italy’s annual inflation rate rose to 1.7% in March 2026 from 1.5% in February, slightly below expectations of 1.8%, preliminary estimates showed. This marked the highest reading since July last year, largely driven by a slower decline in energy prices, with regulated energy falling less sharply (-1.3% vs -11.6% in February) and unregulated energy also easing its drop (-2.4% vs -6.2%). Meanwhile, inflation for unprocessed food accelerated to 4.4% from 3.7%. In contrast, services inflation slowed to 2.8% from 3.6%, reflecting weaker price growth in recreational, cultural, and personal care services (3.0% vs 4.9%), transport services (2.4% vs 2.8%), and housing-related services (4.2% vs 4.5%). 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%. On a monthly basis, consumer prices rose 0.5%, following a 0.7% gain in February. The HICP increased 1.5% year-on-year and 1.6% month-on-month.

Italy’s annual inflation rate accelerated to 1.5% in February 2026 from 1.0% in January, slightly below the preliminary estimate of 1.6%. This marked the highest reading since late September, as services inflation picked up to 3.6% from 2.5% in January, led by faster price growth in transport-related services (2.9% vs 0.7% in January) and recreational, cultural, and personal care (4.9% vs 3%). Meanwhile, energy prices continued to decline, with regulated energy down 11.6% and unregulated energy falling 6.2%. Goods prices remained slightly negative, unchanged at -0.2% from January. On a monthly basis, consumer prices increased 0.7%, revised down from the initial 0.8% estimate but up from 0.4% in January, supported by higher costs for tobacco, services, transport, and unprocessed food. Core inflation, excluding energy and fresh food, rose to 2.4%, while inflation excluding energy alone increased to 2.5%. The HICP rose 1.5% year-on-year and 0.5% month-on-month.

Italy’s annual inflation rate accelerated to 1.6% in February 2026 from 1.0% in January, preliminary estimates showed. This marks the highest reading since late September, mainly driven by higher prices for recreational, cultural, and personal care services, transport-related services (+3.0%), and unprocessed food (+3.6%), while processed food rose more modestly (+1.7%). Meanwhile, costs declined for energy, both regulated (-11.3%) and unregulated (-6.2%), contributing to a moderating effect. Goods prices remained slightly down (-0.2%), whereas services rose 3.6%. On a monthly basis, consumer prices increased 0.8%, the largest gain since October 2022, pushed by higher costs for tobacco (+3.3%), services for recreation and personal care (+2.1%), transport services (+2.0%), and unprocessed food (+1.1%). Core inflation, excluding energy and fresh food, rose to 2.4%, while inflation excluding energy alone climbed to 2.5%. The HICP rose 1.6% year-on-year and 0.6% month-on-month.