Italian Inflation Rate Hits 15-Month Low

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.

Italy’s annual inflation rate eased to 1.0% in January 2026 from 1.2% in December, confirming preliminary estimates. This marked the lowest reading since October 2024, following the implementation of the ECOICOP version 2 classification and the update of the consumer price reference base to 2025=100. Goods prices declined by 0.2% year on year, while food prices rose 1.9%, with unprocessed items up 2.5% and processed items up 1.9%. Costs also increased for housing-related services (+4.4%), tobacco (+3.3%), and recreational, cultural, and personal care services (+3.0%). Services prices continued to rise by 2.5%. Core inflation, excluding energy and fresh food, remained steady at 1.7%, while the measure excluding energy alone stood at 1.9%. On a monthly basis, consumer prices increased 0.4%, following a 0.2% gain in December. The EU-harmonized inflation rate also eased to 1.0% in January 2026 from 1.2% in December.

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.