FX.co ★ Italian Inflation Unexpectedly Holds

The annual consumer price inflation rate in Italy stood at 1.6% in September 2025, maintaining the same level as the previous month and falling slightly below market expectations of 1.7%, as per a preliminary estimate. The deceleration in price growth for non-processed food items, which dropped to 4.8% from 5.6% in August, contributed to a broader disinflationary trend for food and non-alcoholic beverages, which recorded a rate of 3.8% compared to 4% previously. This occurred even as inflation for processed foods increased to 3% from the prior 2.7%. Concurrently, inflation for regulated energy rose to 14% from 12.9%, while the decline in non-regulated energy prices moderated slightly to -5.2% from -6.3%. The core inflation rate, which excludes the volatile categories of energy and unprocessed food, remained steady at 2.1%. On a month-to-month basis, Italian consumer prices saw a modest reduction of 0.2%.