FX.co ★ Italian Producer Prices Fall at Faster Pace

In December 2025, Italy witnessed a 1.4% annual decrease in industrial producer prices, deepening from a 0.2% decline observed in the previous month. On the domestic front, producer prices dropped by 2%. Noteworthy gains were seen in sectors such as basic pharmaceutical products and preparations (increasing by 3.4%), metallurgy and the production of metal products excluding machinery and equipment (up by 2.9%), and other manufacturing industries (also rising by 2.9%). These were outweighed by significant reductions in costs for coke and refined petroleum products, which plummeted by 7.9%, and a 6.9% decrease in electricity and gas supply. In contrast, foreign prices recorded an uptick of 0.3%, driven by performance in the euro area's food, beverages, and tobacco industries (which saw a 4.6% rise), as well as transport equipment (up by 3.5%). Non-euro area countries contributed to these gains with a 9.1% rise in other manufacturing industries, and the repair and installation of machinery and equipment. Excluding energy, domestic producer prices increased by 0.9% on a year-on-year basis, slightly retreating from a 1% rise in November. When examined on a month-to-month basis, producer prices declined by 0.7% in December, counteracting a 1% increase in the previous month.