FX.co ★ Italian Producer Inflation Picks Up to 1.1%

In September 2025, Italy experienced an increase in annual industrial producer inflation, rising to 1.1% from 0.2% in August, which was the lowest rate in eight months. The heightened pace of inflation in domestic producer prices, which climbed to 1.5% from 0.5% in August, was largely influenced by rising costs in pharmaceutical goods and preparations, up by 2.6%, as well as food, beverages, and tobacco, which saw a 2.1% increase. Additionally, foreign market prices saw an uptick, growing by 0.4% compared to 0.3% the previous month. Within this category, the Euro area recorded a rise to 0.6% from 0.4%, and the non-Euro area increased to 0.3% from 0.2%. The Euro area's inflation was mainly driven by food, beverages, and tobacco, which surged by 5.5%, and transport equipment, which rose by 4.0%, while for the non-Euro area, key drivers were other manufacturing industries and the repair and installation of machinery and equipment, up by 4.9%. When energy is excluded, producer inflation slightly decreased to 0.8% from 0.9%. Looking at a month-over-month perspective, producer prices increased by 0.2%, recovering from a 0.6% decline the previous month.