FX.co ★ Italy’s Underlying Inflation Picks Up as CPI ex Tobacco Rises to 1.1% in February

Italy’s consumer prices excluding tobacco accelerated in February 2026, signaling a modest firming in underlying inflation pressures. The CPI ex tobacco index rose 1.1% year-over-year, up from 0.8% in January 2026.

The figures, updated on 17 March 2026, are based on annual comparisons: February’s reading measures price changes relative to February a year earlier, while January’s 0.8% reflected the change versus the same month a year before. The move from 0.8% to 1.1% suggests that price growth, once muted, is gaining some traction in the Italian economy even when volatile tobacco components are stripped out.

While still low by historical standards, the uptick in CPI ex tobacco will be closely watched by analysts and policymakers as a gauge of Italy’s underlying inflation trend and potential pressure on real incomes and monetary policy expectations.