FX.co ★ Italy August Inflation Confirmed at 1.6%

In September 2025, Italy's annual consumer price inflation held steady at 1.6%, consistent with the rate observed in August and aligning with initial forecasts. This marks the lowest inflation rate since May. Price increases decelerated across several categories: food and non-alcoholic beverages saw growth moderate to 3.7% from 4% in August; clothing and footwear dropped to 0.9% from 1.1%; furnishings, household equipment, and maintenance slowed to 0.3% from 0.5%; and recreation and culture eased to 0.6% from 1.1%. Additionally, deflation intensified in both the housing and utilities sector (-1% compared to -0.8%), and communication witnessed a sharper decline (-4.6% versus -4.1%). Prices remained steady for alcoholic beverages and tobacco at 2%, health at 1.5%, and education at 3.1%. Conversely, transportation costs reversed course, rising by 0.3% from a previous decline of 0.2%, and both restaurants and hotels (3.8% from 3.2%) and miscellaneous goods and services (3.2% from 3.1%) experienced accelerated price increases. Monthly consumer prices fell by 0.2% in September, in line with preliminary estimates, counteracting a 0.1% rise in the prior month.