Italy’s annual inflation rate rose to 3.3% in August 2026 from 2.9% in July, reaching its highest level since September 2023, according to preliminary estimates. The pickup was driven primarily by higher energy costs: prices for non-regulated energy surged 16.9% year-on-year, up from 11.4% in July, while regulated energy inflation increased to 18.8% from 14.8%. These moves underscore persistent price pressures stemming from ongoing tensions in the Middle East.
By contrast, inflation in several service categories eased. Price growth for recreational, cultural and personal care services slowed to 2.6% from 3.0%, and transportation services inflation decelerated to 0.9% from 1.6%. Food inflation was unchanged at 1.1%.
Core inflation, which excludes energy and fresh food, edged down to 1.5% from 1.6%, suggesting underlying price pressures remain more contained. On a monthly basis, the consumer price index (CPI) increased by 0.5%—the largest monthly rise since April—beating expectations for a 0.2% gain and following a 0.3% increase in July. Meanwhile, HICP inflation accelerated to 3.2% year-on-year in August from 2.9% in July.
