Italian Producer Prices Rise the Most Since Early 2023

Italy’s producer prices surged 6.8% year-over-year in April 2026, the steepest increase since February 2023, driven by soaring energy prices linked to the Iran conflict. Domestic prices climbed 8.8%, up from 5.4% in March, while core inflation (excluding energy) accelerated to 2.0% from 1.5%. In foreign markets, prices rose 0.6% (0.9% in the euro area, 0.3% outside it). By sector, domestic prices saw the sharpest gains in coke and refined petroleum products (+79.1%), followed by chemicals and metallurgy (+5.6%). Abroad, coke and refined petroleum products led non-euro area growth (+32.2%), while other manufacturing and transportation equipment posted notable increases in both the euro area (+6.2%) and non-euro area (+11.6%). Month-over-month, producer prices rose 0.3% after a 4.4% 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.