Italy’s annual inflation rate edged down to 1% in January 2026 from 1.2% in the previous month, in line with market expectations, preliminary estimates showed. It marked the lowest reading since October 2024, following the adoption of the ECOICOP version 2 classification and a new 2025=100 reference base for consumer prices. Prices for food products rose at a faster pace, supported by both unprocessed (2.5%) and processed (2.2%) items. Costs also accelerated for housing-related services (4.4%), tobacco (3.3%), and recreational, cultural, and personal care services (3%). On a monthly basis, consumer prices increased marginally to 0.4%, from 0.2% in December, matching market expectations. The core inflation rate, which excludes energy and fresh food, held steady at 1.8%, while the measure excluding energy alone was 1.9%. The EU-harmonized inflation rate eased slightly to 1% in January 2026, from 1.2% in the previous month.
