Inflation falls below 2% in April, ISTAT reports

Inflation dropped below the 2% threshold in April, according to updated data from ISTAT based on preliminary figures released at the end of last month. Year-on-year price growth remained stable compared to March, settling at 1.9%—a slight decrease from the initial estimate of 2%. On a monthly basis, prices rose by 0.1%.

However, the "shopping basket"—which includes food, household goods, and personal care products—accelerated, reaching 2.6% in April, surpassing the general inflation rate. A key factor in curbing overall price growth was the decline in prices of unregulated energy goods (from +0.7% to -3.4%) and a slowdown in tobacco prices (from +4.6% to +3.4%). Conversely, prices rose for regulated energy goods (from +27.2% to +31.7%), unprocessed food (from +3.3% to +4.2%), processed food (from +1.9% to +2.2%), and transport services (from +1.6% to +4.4%).

The year-on-year growth in goods prices slowed (from +1.5% to +1.0%), while service prices increased (from +2.5% to +3.0%). The inflation gap between services and goods widened to +2.0 percentage points, up from +1.0 the previous month.

According to ISTAT, the modest month-on-month increase in the overall index was mainly driven by higher prices for transport services (+3.4%) and recreational, cultural, and personal care services (+1.8%), both influenced by seasonal factors. Prices also rose for unprocessed food (+0.7%), processed food (+0.5%), and housing-related services (+0.3%). These increases were only partially offset by declines in regulated energy prices (-6.9%), unregulated energy (-5.8%), and durable goods (-0.3%).