Italy's inflation rate jumped to 1.5% in January 2025, exceeding forecasts of 1.3% and marking the sharpest rise in consumer prices since October 2023.
Italy inflation exceeds forecasts
This acceleration is primarily attributed to a significant increase in the cost of regulated energy (27.8% compared to 12.7% in December 2024). This surge reflects rising power prices across Europe, driven by the halt of Russian gas flows and subsequent increases in LNG prices, as well as Italy's increased power exports to Germany.
Italy's core inflation holds steady at 1.8%
While non-regulated energy price deflation slowed, the cost of processed food also rose. These increases offset moderating inflation in transportation and communication services. Core inflation remained stable at 1.8%.
