Italian Producer Inflation Hits 11-Month Low

Industrial producer prices in Italy fell by 1.4% year-on-year in December 2025, slipping further from a 0.2% decline in the previous month. Domestic producer prices decreased 2%, with gains in basic pharmaceutical products and pharmaceutical preparations (3.4%), metallurgy and manufacture of metal products excluding machinery and equipment (2.9%), and other manufacturing industries (2.9%), being offset by lower costs for coke and refined petroleum products (-7.9%) and electricity and gas supply (-6.9%). Meanwhile, foreign prices rose 0.3%, led by the food, beverages, and tobacco industries (4.6%) and transport equipment (3.5%) in the euro area, and other manufacturing industries, repair and installation of machinery and equipment (9.1%) in non-euro area countries. Excluding energy, domestic producer prices rose 0.9% year-on-year, slightly easing from 1% in November. On a monthly basis, producer prices fell 0.7% in December, reversing a 1% gain in the previous month.

Industrial producer prices in Italy fell 0.2% year-on-year in November 2025, following a 0.1% gain in October, marking the first decline since November 2024. Domestic producer prices decreased 0.3%, while gains in other manufacturing industries (+3.1%), basic pharmaceutical products (+2.8%), and metallurgy (+2.5%) were offset by lower electricity and gas supply (-3.8%). Meanwhile, foreign prices rose 0.6%, led by transportation equipment (+6.4%) and food, beverages, and tobacco (+3.8%) in the euro area, and other manufacturing industries (+7.0%) in the non-euro area. Excluding energy, domestic producer prices rose 1.0% annually and 0.3% quarterly. On a monthly basis, producer prices jumped 1%, the largest increase since June, rebounding from a 0.2% fall in October, driven by higher energy prices, particularly refined petroleum products and electricity.

The annual industrial producer inflation in Italy broadly slowed to 0.1% in October 2025 from 1.1% in September, the lowest reading since November 2024. Domestic producer prices rose modestly by 0.2%, down from a 1.5% gain in September, as increases mainly in basic pharmaceutical products (2.4%), metallurgy, and other manufacturing industries (1.8%) were nearly offset by lower costs of electricity and gas (-1.0%). Meanwhile, prices in the foreign market increased by 0.4%, with a 0.6% rise in the Euro area and 0.3% in the non-Euro area. Within the Euro area, gains were led by transportation equipment (5.0%) and food, beverages, and tobacco (4.2%), while other manufacturing industries (4.8%) led increases in the non-Euro area. Excluding energy, producer prices 0.7% annually. On a monthly basis, industrial producer prices fell 0.2%, following a 0.2% gain in September, primarily due to lower energy costs.