Italy’s January Inflation Confirmed at 1%

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.

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.