Italy’s Producer Prices Surge in March

Italy’s producer prices rose 4.2% year-over-year in March 2026, ending four consecutive months of declines and marking the steepest increase since February 2025, primarily fueled by soaring energy prices tied to the Iran conflict. On the domestic market, prices jumped 5.4%, reversing a 3.7% drop in February. Stripping out energy, price growth remained subdued at 1.5% (up from 1.2% the prior month). In foreign markets, prices edged up 1.1% (1.3% in the euro area, 1.1% outside it). By sector, the sharpest annual domestic increase was in coke and refined petroleum products (+45.1%), followed by metallurgy and fabricated metal products (+4.9%). Month-over-month, producer prices surged 4.4%, the largest gain since July 2022.

Industrial producer prices in Italy fell 2.7% year-on-year in February 2026, deepening from a 1.6% decline in January and marking the sharpest drop since October 2024. Domestic prices fell 3.7%, pressured by a steep decline in electricity and gas supply (-12.4%) and continued weakness in coke and refined petroleum products (-5.5%). Meanwhile, foreign prices edged up 0.2%, supported by increases in transport equipment (+6.9% in the euro area) and other manufacturing industries, including machinery repair and installation (+5.4% in the euro area and +13.5% in non-euro markets). Excluding energy, domestic producer prices rose 1.1% year-on-year, unchanged from January. On a monthly basis, industrial producer prices fell 0.4%, reversing a 1.5% jump in January, which was the sharpest in a year. Over the three months to February, industrial producer prices rose 0.6% compared to the previous period.

Industrial producer prices in Italy fell 1.6% year-on-year in January 2026, deepening from a 1.4% decline in December and marking the largest drop since October 2024. Domestic producer prices fell 2.1%, as higher prices for metallurgy and manufacture of metal products (+4.3%) were offset by declines in electricity and gas supply (-6.1%) and coke and refined petroleum products (-10.7%). Meanwhile, foreign prices edged up 0.1%, supported by transport equipment (+5.0%) in the euro area and other manufacturing industries, including machinery repair and installation (+9.8%), in non-euro markets, despite sharp declines in coke and refined petroleum products (-17.2% in the euro area and -16.4% outside). Excluding energy, domestic producer prices rose 1.1%, accelerating from 0.9% in December. On a monthly basis, industrial producer prices went up 1.5%, the most in a year, rebounding from a 0.7% fall previously.