FX.co ★ Italy Inflation Rate Inches Higher as Expected

Italy's annual consumer price inflation experienced a slight uptick, reaching 1.7% in June 2025, compared to 1.6% in May, aligning with market forecasts. Meanwhile, the EU-harmonized index settled at 1.7%, just under market expectations, staying below the European Central Bank's 2% target for the second consecutive month. Inflation saw increases in non-processed food, which went up to 4.2% from 3.5% in May, and processed food, which rose to 3% from 2.7%. Transportation services also experienced a rise, hitting 2.9% from the previous 2.6%. Additionally, there was a more moderate deflation for durable goods, improving from a decline of -1.1% to -0.8%. Conversely, the pace of price increases for regulated energy notably slowed to 22.7% from 29.3%, while unregulated energy prices decreased more rapidly at -4.6%, compared to -4.3% previously. The core inflation rate, which omits the often volatile and external factors of fresh food and energy prices, went up to 2.1% from 1.9% in May. Month-over-month, Italian consumer prices increased by 0.2%.