Inflation rises slightly in Italy

Italy 's annual inflation rate rose to 1.7 percent in June 2025 from 1.6 percent the previous month, in line with preliminary estimates and initial market expectations. In contrast, the EU-compliant inflation rate rose to 1.8 percent from 1.7 percent the previous month, revised upwards from the 1.7 percent preliminary estimate but in line with preliminary estimates. Inflation rose in both unprocessed goods (4.2 percent vs. 3.5 percent in May) and transport services (2.9 percent vs. 2.6 percent). Deflation was also milder in durable goods (-0.8 percent vs. 1.1 percent). Meanwhile, prices in regulated energy slowed (22.6 percent vs. 29.3 percent), potentially impacting the slowdown in housing and utilities costs (2.4 percent vs. 3.9 percent). The core inflation rate, which excludes the volatile and often exogenous sub-indices of fresh food and energy, rose to 2 percent from 1.9 percent in May, revised down from the initial 2.1 percent forecast. Consumer prices in Italy rose 0.2 percent from the previous month.