Italy: Inflation edges up in December from November
Latest reading: Harmonized consumer prices increased 1.2% in annual terms in December, following a 1.1% increase in the previous month and remaining one of the lowest readings in the euro area.
Relative to the previous month’s figures, there were higher price pressures for food and non-alcoholic beverages (+2.4% on a year-on-year basis vs +1.9% in November) and transportation (+0.6% vs +0.1% in November). In contrast, there were reduced price pressures for recreation (+0.5% vs +0.7% in November) and restaurants and hotels (+3.1% vs +3.5% in November). Finally, the change in housing and utilities prices was the same as in the prior month (-1.9% in December and November).
Meanwhile, consumer prices were up 1.2% in annual terms in December, following a 1.1% increase in the previous month.
Lastly, harmonized consumer prices were up 0.16% in December on a month-on-month basis, following a 0.24% decline in the prior month.
Panelist insight: Commenting on the outlook, ING’s Paolo Pizzoli stated:
“Inflation is not an issue in Italy, and will not be one in 2026, in our view. There are multiple factors playing in this direction, acting on goods and services. On the goods front, a favourable base effect will continue to keep a lid on the energy component, at least over the first months of 2026. A relatively strong euro and aggressive export pricing policies from international trade partners partially redirecting their good export flows out of the US should also contribute to keeping inflation at bay.”