Italy Inflation Rate Rises to Over 2-Year High

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.

Italy’s annual inflation rate rose sharply to 2.8% in April 2026, up from 1.7% in March and above market expectations, according to preliminary estimates. This marking the highest level since 2023, as increasing energy prices reflect Italy’s reliance on imported gas for electricity and heating, with prices rebounding for both unregulated (9.9% vs -2%) and regulated (5.7% vs -1.6%). Goods prices surged (3.2% versus 0.8%), as unprocessed food inflation accelerated to 6% from 4.7%. Services' inflation slowed (2.4% vs 2.8%), easing for recreational, cultural and personal care services (2.6% vs 3%) and transportation (0.5% vs 2.2%). In contrast, housing-related inflation edged up (2.5% vs 2.2%). Core inflation, which excludes energy and fresh food, eased to 1.6% from 1.9%, while inflation excluding energy alone slowed less to 2% from 2.1%. The HIPC increased 2.9% year-on-year and 1.7% month-on-month. On a monthly basis, consumer prices increased 1.2%, the highest level since October 2022.