Italy: Harmonized inflation holds steady in February
Latest reading: Harmonized inflation remained at January’s 1.7% in February, marking the joint-highest inflation rate since October 2023. Looking at the details of the release, higher price pressures for food plus housing and utilities offset falling transportation costs.
Meanwhile, the trend pointed up, as annual average harmonized inflation ticked up to 1.2% in February (January: 1.1%). Moreover, consumer price inflation rose 1.7% in February from the previous month’s 1.5%.
Finally, harmonized consumer prices rose 0.08% in February over the previous month, contrasting January’s 0.81% drop.
Panelist insight: Commenting on the outlook, ING’s Paolo Pizzoli stated:
“Looking ahead, over the rest of 2025 headline inflation remains exposed to multiple factors. […] The Italian government is about to approve a decree intended to soften the blow of energy prices on households and businesses. Should this include a temporary downward revision of VAT on electricity bills, it would further limit the scope for upward inflation pressure stemming from energy.”