Italy’s annual inflation rate increased to 1.7% in March 2026 from 1.5% in February, in line with the preliminary estimate. This is the highest rate since July of the previous year and was driven primarily by energy prices. Regulated energy prices fell at a much slower pace (-1.6% vs -11.6% in February), while the decline in unregulated energy prices also moderated (-2.0% vs -6.2%).
Price growth for unprocessed food accelerated, with inflation rising to 4.7% from 3.7%. By contrast, services inflation slowed significantly, easing to 2.8% from 3.6%. This deceleration was particularly marked in recreational, cultural, and personal care services (3.0% vs 4.9%), as well as in transport services (2.2% vs 2.9%).
On a monthly basis, consumer prices rose 0.5% in March, down from a 0.7% increase in February. Core inflation, which excludes energy and fresh food, moderated to 1.9% from 2.4%, while inflation excluding only energy slowed to 2.1% from 2.5%. The Harmonised Index of Consumer Prices (HICP) rose 1.6% year-on-year and 1.7% month-on-month.
