FX.co ★ Italy Inflation Holds at 1-Year Low

Italy's annual inflation rate held steady at 1.2% in November 2025, maintaining the one-year low from October and slightly below market predictions, as per preliminary estimates. There was a notable deceleration in inflation for transportation services, which decreased to 0.8% from 2% in October. Similarly, the inflation rate for fresh food dropped to 1.4% from 1.9%. Services related to recreation, culture, and personal expenditure experienced a slowdown, with rates at 2.9% compared to 3.3% previously. Non-durable goods also saw a dip from 1.3% to 1%. Moreover, regulated energy costs witnessed a sharper decline, dropping by 3.3% against a previous 0.5% decrease. This trend aligns with muted European oil and natural gas benchmarks, driven by a robust supply of fuel and power feedstocks. Conversely, there was a slight increase in inflation for processed food, rising to 2.7% from 2.5%, while the deflation rate for durable goods eased slightly, shifting from -0.8% to -0.1%. The core inflation rate, excluding energy and fresh food, moderated to 1.8% from 1.9% in the prior month.