31.03.202609:15:14UTC+00Italy Inflation Climbs to 8-Month High

Italy’s annual inflation rate rose to 1.7% in March 2026 from 1.5% in February, according to preliminary estimates, coming in just below market expectations of 1.8%. This was the highest rate since July of the previous year and was mainly driven by a slower decline in energy prices. Regulated energy prices fell less sharply (-1.3% vs -11.6% in February), while the drop in unregulated energy prices also moderated (-2.4% vs -6.2%).

At the same time, inflation for unprocessed food picked up, accelerating to 4.4% from 3.7%. By contrast, services inflation eased to 2.8% from 3.6%, reflecting weaker price growth in recreational, cultural, and personal care services (3.0% vs 4.9%), transport services (2.4% vs 2.8%), and housing-related services (4.2% vs 4.5%).

Core inflation, which excludes energy and fresh food, slowed to 1.9% from 2.4%, while inflation excluding only energy eased to 2.1% from 2.5%. On a monthly basis, consumer prices increased by 0.5%, following a 0.7% rise in February. The HICP rose 1.5% year-on-year and 1.6% month-on-month.