Italian Inflation Rate Climbs to 1-1/2-Year High

Italy’s consumer price inflation accelerated to 2.0% year-on-year in March 2025, up from 1.6% in February, surpassing market expectations of 1.6%, according to a preliminary estimate.

This marked the highest inflation rate since September 2023, driven primarily by rising costs in several categories: non-regulated energy products (1.3% vs. -1.9% in February), tobacco (4.6% vs. 4.1%), unprocessed food (3.3% vs. 2.9%), services related to communication (0.8% vs. 0.5%), and services related to recreation, including repair and personal care (3.3% vs. 3.1%).

Meanwhile, the decline in durable goods prices slowed (-1.2% vs. -1.5%).

Core inflation, which excludes volatile components such as energy and unprocessed food, remained steady at 1.7% in March.