FX.co ★ Italian Producer Inflation Falls to 8-Month Low

In August 2025, Italy's annual industrial producer inflation rate decreased to 0.2%, down from 1.6% in July, marking the smallest rise in producer prices since inflation began accelerating again in December 2024. A reduction in energy prices (-0.6%) contributed significantly to this decline, as recent production increases by OPEC+ exerted downward pressure on petroleum-based commodities. Additionally, the abundant supply of LNG across Europe mitigated natural gas-related inflation, which has been a major driver of Italian producer inflation since 2022. Intermediate goods also saw a price decrease of 0.4%. In contrast, prices for consumer goods climbed sharply by 2.1%, and capital goods rose by 1%. When excluding energy, the annual producer inflation stood at 0.8%. On a monthly basis, producer prices experienced a 0.6% decline.