2025.08.2909:14:13UTC+00Italian Inflation Rate Inches Lower

In August 2025, Italy's annual consumer price inflation slightly decreased to 1.6% from 1.7% the previous month, falling short of market expectations of 1.7%. This marks the smallest rise since May, based on preliminary estimates. Simultaneously, the EU-harmonized inflation rate also dipped by 0.1 percentage point to 1.7%, contributing to a moderation of inflationary pressures within the Eurozone. Inflation softened for regulated energy goods, decreasing to 12.9% from 17.1% in July, and for communication services, which saw a reduction from 0.5% to 0.2%. Additionally, consumer prices for non-regulated energy goods declined further, dropping to -5.9% from -5.2%. Conversely, there was an acceleration in the prices of non-processed foods, which rose to 5.6% from 5.1%, processed foods, increasing to 3% from 2.8%, and cultural and recreational services, which saw an uptick to 2.9% from 2.7%. The core inflation rate, which excludes volatile categories such as fresh food and energy, slightly rose to 2.1% from 2% in July. Month-on-month, the Italian Consumer Price Index (CPI) increased by 0.1%.