Italy’s annual inflation rate eased to 1.6% in August 2025, according to the latest flash estimate released by the national statistics agency, Istat. This marks a slight decline from July’s 1.7%, signaling a modest slowdown in consumer price growth. On a monthly basis, prices increased by just 0.1% from July to August.
The deceleration was mainly driven by lower inflation in the energy sector. Prices for regulated energy products rose by 12.9% in August, down from 17.1% in July, while non-regulated energy saw a deeper decline of 6.3%, compared to 5.2% in the previous month. Processed food, including alcohol, and communication services also contributed to the easing trend, showing smaller increases compared to July.
However, not all categories followed the same path. Inflation for unprocessed food accelerated to 5.6%, up from 5.2%, while transport services and personal care services rose to 3.5% and 3.0%, respectively. These increases partly offset the broader slowdown in headline inflation.
Core inflation, which excludes energy and unprocessed food, edged slightly higher to 2.1% from 2.0%. Inflation excluding energy alone also rose, indicating persistent underlying price pressures.
Goods prices increased by 0.6% year-on-year, slowing from 0.
8% in July, while services inflation accelerated to 2.7%. The widening gap between goods and services inflation reflects ongoing shifts in consumer demand and cost structures.
Meanwhile, the harmonised index of consumer prices (HICP) showed a monthly decline of 0.2%, though the annual rate remained stable at 1.6%.
