Italy August Inflation Confirmed at 4.2%

Italy’s annual inflation rate rose to 4.2% in September 2026 from 3.3% in the previous month, matching preliminary estimates. This marked the highest reading since September 2023, driven largely by higher energy prices, with inflation in regulated energy (25.8% vs. 18.6%) and unregulated energy (22.5% vs. 17.0%) accelerating significantly amid prolonged Middle East tensions. Moreover, prices rose faster for unprocessed food (5.5% vs. 3.8%), recreational, cultural, and personal care services (2.9% vs. 2.6%), and transportation (1.6% vs. 0.8%). Core inflation, which excludes energy and fresh food, edged up to 1.6% from 1.5% in August. On a monthly basis, consumer prices increased by 0.7%, following a 0.5% gain in the previous month. Meanwhile, HICP inflation accelerated to 4.2% from 3.2% in August, matching preliminary estimates, while prices rose by 2.1% month-on-month.

The annual inflation rate in Italy climbed to 4.2% in September 2026 from 3.3% in August, according to preliminary estimates. The reading marks a fresh highest level since September 2023, and is well above market expectations of a rise to 3.8%. Energy inflation climbed further for both regulated (25.9% vs 18.6%) and non-regulated (22.2% vs 17%) products. Price growth also accelerated sharply for unprocessed food (5.5% vs 3.8%) and transport (1.6% vs 0.8%). Underlying price pressures also strengthened. Core inflation, which excludes energy and unprocessed food, rose to 1.7% from 1.5%, while inflation excluding energy increased to 2.0% from 1.7%. From the previous month, consumer prices rose 0.7%, accelerating from a 0.5% rise in August. The HICP inflation also accelerated sharply, reaching a fresh three-year high of 4.1%, up from 3.2%, while surging 2% month-on-month, reflecting the impact of summer sales that are excluded from the headline inflation rate, following a 0.1% increase.

The annual inflation rate in Italy rose to 3.3% in August 2026 from 2.9% in July, confirming the preliminary estimate and marking the highest reading since September 2023. The main upward contribution came from higher energy prices, with regulated energy inflation rising to 18.6% from 14.8% and non-regulated energy inflation increasing to 17.0% from 11.4%, as ongoing tensions in the Middle East continued to fuel inflationary pressures. Meanwhile, inflation for durable goods accelerated to 1.3% from 0.7%, while unprocessed food inflation rose to 3.8% from 3.6%. In contrast, inflation eased for recreational, cultural and personal care services (2.6% vs 3%), and transport services (0.8% vs 1.6%). Core inflation, excluding energy and fresh food, edged down to 1.5% from 1.6%. Monthly, the CPI rose 0.5%, following a 0.3% gain in July. The HICP inflation accelerated to 3.2% year-on-year from 2.9% in July, confirming the preliminary estimate, while rising 0.1% month-on-month.