FX.co ★ Italian Inflation Rate Climbs to 1-1/2-Year High

Italy experienced an acceleration in consumer price inflation, reaching 2.0% year-on-year in March 2025, an increase from 1.6% in February, and exceeding market predictions of 1.6%, based on preliminary data. This represents the highest inflation rate since September 2023, largely attributable to increased costs in various sectors. Notable upticks occurred in non-regulated energy products, which rose to 1.3% from a negative 1.9% in February, tobacco up to 4.6% from 4.1%, unprocessed food climbing to 3.3% from 2.9%, communication-related services increasing to 0.8% from 0.5%, and services related to recreation, repair, and personal care advancing to 3.3% from 3.1%. Additionally, the pace at which durable goods prices declined slowed, going from -1.5% to -1.2%. Core inflation, which excludes the more volatile categories like energy and unprocessed food, remained stable at 1.7% in March.