Italy Producer Inflation Hits Over 3-Year High

Italy’s producer prices accelerated to 13.8% year-on-year in September 2026, marking its highest level since December 2022, following a 10.9% rise in the previous month. Excluding the energy sector, however, producer inflation increased at a much slower pace to 3.5% from 3.3% in August. Inflation in the domestic market surged to 17.4% from 13.5%, while price growth accelerated sharply in electricity and gas supply (35.9% vs 26.3%). Within manufacturing, prices increased in coke and refined petroleum products (91.1%), chemicals (11.4%) and metallurgy and fabrication of fabricated metal products, excluding machinery and equipment (7.6%). In foreign markets, inflation edged up to 4.2% from 3.9%, reflecting increases in both the eurozone (4.1% vs 4%) and elsewhere (4.5% vs 3.8%). On a monthly basis, producer prices edged up 2.9%, the highest reading since March, after a 2.4% rise in the prior month.

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.