FX.co ★ Italy Producer Inflation Falls to 7-Month Low

In July 2025, Italy experienced a decrease in its annual industrial producer inflation rate, which fell to 1.6% from 2.4% in June. This is the lowest inflation rate recorded since December 2024. Within the domestic market, growth cooled to 2.4%, down from 3.9% in June, primarily due to a 7.4% reduction in coke and refined petroleum products. Additionally, electricity and gas prices increased by 7.9%, a moderation from the previous 12.9% hike. In foreign markets, overall prices experienced a slight uptick of 0.1%, following a 0.2% increase in June. Specifically, in the Euro Area, costs saw a consistent rise of 0.4%, driven by notable increases in sectors such as transportation equipment (+4.4%), food, beverages, and tobacco (+3.9%), and wood, paper, and printing (+3.3%), while there was a significant drop of 9.9% in coke and refined petroleum products. Conversely, in non-Euro Area countries, prices declined by 0.2%, improving from a 0.4% fall, largely due to a 7.8% reduction in coke and refined petroleum costs. On a monthly scale, producer prices advanced by 0.5%, easing from the previous month's substantial rise of 1.4%.