FX.co ★ Italy August Inflation Confirmed at 1.6%

In August 2025, Italy's annual consumer price inflation eased slightly to 1.6%, down from 1.7% in the previous month, aligning with preliminary estimates. This is the lowest rate recorded since May. The deceleration was primarily attributed to reduced price growth in regulated energy goods, which decreased to 12.9% from 17.1% in July, and non-regulated energy goods, which declined to -6.3% from -5.2%. Additionally, there were smaller increases in communication services, which rose by 0.2% compared to 0.5%, and processed foods, which saw a slight decrease from 2.8% to 2.7%. Conversely, inflation saw an uptick in areas such as unprocessed foods, which increased to 5.6% from 5.1%, as well as in recreational, cultural, and personal care services, which went up to 3% from 2.7%, and transportation services, which rose to 3.5% from 3.3%. Core inflation, which excludes volatile categories like energy and fresh food, rose slightly to 2.1% from 2%. On a monthly scale, consumer prices rose by 0.1%, slowing from a 0.4% increase in July. The EU-harmonized Consumer Price Index decreased by 0.2% month-on-month, influenced by summer sales, while the annual inflation rate moderated to 1.6% from 1.7%.