Italy’s January Inflation Confirmed at 1%

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.

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.