FX.co ★ Italy Inflation Rate Revised Lower

In March 2025, Italy witnessed an increase in its annual inflation rate, reaching 1.9% up from 1.6% in the preceding month. This marked the highest rate in a year and a half, despite being slightly adjusted down from an initial estimate of 2%. This rise highlighted a consistent stabilization in price growth across significant sectors of the Italian consumer market, which have been experiencing fluctuations due to energy and food supply disruptions following the Russian invasion of Ukraine. Notably, there was a rebound in non-regulated energy prices, which increased by 0.7% compared to a decrease of 1.9% in February. Additionally, prices accelerated for tobacco (4.6% compared to 4.1% previously), non-processed foods (3.3% versus 2.9%), and recreational and cultural services (3.5% against 3.1%). Conversely, the inflation rate for regulated energy saw a decline, slowing to 27.2% from 31.4%. Annual core inflation, which strips out the volatile sectors of energy and fresh food, remained steady at 1.7%, as was the case in the prior month. On a monthly basis, the Consumer Price Index (CPI) increased by 0.2%.