Italy’s annual inflation rate eased to 1.0% in January 2026 from 1.2% in December, confirming preliminary estimates. This marked the lowest reading since October 2024, following the implementation of the ECOICOP version 2 classification and the update of the consumer price reference base to 2025=100. Goods prices declined by 0.2% year on year, while food prices rose 1.9%, with unprocessed items up 2.5% and processed items up 1.9%. Costs also increased for housing-related services (+4.4%), tobacco (+3.3%), and recreational, cultural, and personal care services (+3.0%). Services prices continued to rise by 2.5%. Core inflation, excluding energy and fresh food, remained steady at 1.7%, while the measure excluding energy alone stood at 1.9%. On a monthly basis, consumer prices increased 0.4%, following a 0.2% gain in December. The EU-harmonized inflation rate also eased to 1.0% in January 2026 from 1.2% in December.
