Italy’s annual inflation slowed to 1.2% in October 2025 from 1.6% in September, confirming preliminary estimates and marking the lowest in a year. The deceleration was driven by a sharp drop in regulated energy prices (-0.5% vs 13.9% in September), alongside softer increases in unprocessed food (1.9% vs 4.8%), transport services (2.0% vs 2.4%), and processed food (2.5% vs 2.7%). These were partly offset by faster price growth in recreational and personal care services (3.3% vs 3.1%) and a smaller drop in unregulated energy (-4.9% vs -5.2%). Core inflation eased to 1.9%, while goods inflation slowed to 0.2% and services inflation stayed at 2.6%. Prices for food, household, and personal care items also weakened (2.1% vs 3.1%). Month-on-month, consumer prices fell 0.3%, following a 0.2% drop in September.
