Italy’s producer price index (PPI) fell more sharply in December 2025, underscoring persistent disinflationary pressures at the factory gate and signaling potential headwinds for price growth further down the supply chain.
According to data updated on 30 January 2026, the Italian PPI declined 1.4% year-over-year in December, compared with a 0.2% year-over-year drop recorded in November 2025. Both figures measure price changes relative to the same month a year earlier, indicating that producer prices in Italy have not only remained in negative territory but accelerated their decline at the end of the year.
The deepening year-over-year contraction suggests that cost pressures on Italian manufacturers continued to ease into December, a development that may help contain consumer inflation but could also reflect weaker demand dynamics at home or abroad. Investors and policymakers will be watching upcoming data closely to assess whether this downward trend in producer prices stabilizes or extends further into 2026.
