FX.co ★ Italian Inflation Confirmed at 1.7%

In June 2025, Italy experienced a modest increase in its annual inflation rate, which rose to 1.7%, up slightly from 1.6% in May. This movement aligned with both the preliminary prediction and the initial market forecasts. Likewise, the EU-harmonized inflation rate also saw an uptick, reaching 1.8% from the previous 1.7%—a revision from the initial flash estimate of 1.7% yet consistent with preliminary estimates. There was notable inflation in the categories of non-processed goods, which climbed to 4.2% from May's 3.5%, and transportation services, which increased to 2.9% from 2.6%. Deflation in the durable goods sector was less pronounced, easing to -0.8% from -1.1%. Conversely, price increments were slower in the regulated energy sector, dropping to 22.6% from 29.3%, which may have contributed to the deceleration in costs for housing and utilities, now at 2.4% compared to 3.9%. The core inflation rate, which does not account for the more unpredictable fresh food and energy subindices, rose slightly to 2% from 1.9% in May, though this was a downward revision from the initial 2.1% flash estimate. Month-on-month, Italian consumer prices edged up by 0.2%.