FX.co ★ Italy October Inflation Confirmed at 1.2%

Italy experienced a slowdown in its annual inflation rate, which eased to 1.2% in October 2025 from 1.6% in September. This decrease aligns with initial projections and signifies the lowest inflation rate seen in a year. This reduction was primarily attributed to a significant decline in regulated energy prices, which fell to -0.5% compared to a sharp increase of 13.9% in September. Additionally, there were more moderate rises in the costs of unprocessed food, which increased by 1.9% compared to 4.8% the previous month, transport services growing by 2.0% from 2.4%, and processed food increasing by 2.5% compared to 2.7%. These factors were somewhat counterbalanced by an acceleration in prices for recreational and personal care services, which rose by 3.3% compared to 3.1%, and a less pronounced decline in unregulated energy prices, down by 4.9% versus 5.2%. Core inflation dropped to 1.9%, with goods inflation slowing to 0.2% while services inflation remained at 2.6%. Prices for food, household, and personal care products also showed signs of weakening, with a rise of 2.1% compared to 3.1%. On a month-to-month basis, consumer prices decreased by 0.3%, following a 0.2% decline in September.