Italian Producer Inflation Hits 11-Month Low

Italy’s producer prices accelerated 10.9% year-on-year in August 2026 from a revised 7.7% in July, reaching the highest level since January 2023. Prices in the domestic market climbed 13.5% from 9.3% in the previous month, driven by a sharp increase in electricity and gas supply prices (26.3% vs 14.7%). Within manufacturing, the largest increases were recorded in coke and refined petroleum products (72.6%), chemicals (10.2%), and metallurgy and fabricated metal products, excluding machinery and equipment (7.3%). Excluding energy, domestic producer prices edged up 3.3% from 3.2% in July. On foreign markets, prices also increased (3.9% vs 3.4%), with prices rising in both the euro area (4.0% vs 3.5%) and non-euro area markets (3.8% vs 3.5%). On a monthly basis, producer prices edged up 2.4% from 2.3% in the prior month, the highest reading since March.

Italy's producer prices rose 7.8% year-on-year in July 2026, accelerating from a 5.8% increase in the previous month and marking the highest level since February 2023. Prices in the domestic market rose at a faster pace (9.3% vs 6.8% in June), driven by a sharp increase in electricity and gas prices (14.5% vs 8.9%), as the resumption of fighting in the Middle East during the month put strain on energy supplies again. Within the manufacturing sector, the largest increases were recorded in coke and refined petroleum products (54%), chemicals (9.6%), and metallurgy and fabricated metal products, except machinery and equipment (7.7%). Excluding energy, domestic producer prices rose 3.3%, following a 2.9% increase in June. Prices in the foreign market also went up (3.6% vs 3.1%), with prices rising in both the euro area (3.7% vs 3.4%) and non-euro area (3.5% vs 2.8%) markets. On a monthly basis, producer prices jumped 2.4%, the biggest increase since March, after a flat reading in June.

Italy's producer prices increased 5.8% year-on-year in June 2026, easing from a 7.3% rise in the previous month. Domestic producer inflation slowed to 6.8% from 9.1%, while prices excluding energy accelerated slightly (2.9% vs 2.5%). Within manufacturing, price growth slowed for food, beverages and tobacco (-1.8%) and computer, electronic and optical products (-0.6%), while prices increased for coke and refined petroleum products (42.2%) and chemicals (8.0%). Meanwhile, inflation for electricity and gas supply eased to 8.9% from 12.6%. On foreign markets, producer prices accelerated to 3.1% from 2.7%, with prices rising 3.4% in the euro area and 2.8% outside it. Abroad, prices rose most for coke and refined petroleum products (18.1% non-euro area). On a monthly basis, producer prices were unchanged in June after a 0.2% decline in May.