Italy producer prices fall again in August, ending two-month rebound

In August 2025, Italy’s industrial producer prices fell by 0.6% month-on-month, reversing a 0.5% gain in July, according to Istat data published Tuesday. On an annual basis, prices rose by just 0.2%, a sharp deceleration from the 1.6% increase in the previous month. This marks a renewed slowdown in price momentum after two consecutive months of growth.

On the domestic market, prices declined 0.7% from July but still managed to climb 0.5% year-on-year, down from July’s 2.4%. Excluding the energy component, however, producer prices increased 0.3% on the month and accelerated annually to 0.9% from 0.6% in July. In contrast, export prices slipped 0.1% on the month, though they rose 0.3% from a year earlier.

Among manufacturing activities, the largest annual increases in domestic prices were recorded in pharmaceuticals (+2.6%) and food, beverages and tobacco (+2.1%). On external markets, price growth was strongest in food, beverages and tobacco (+5.5%) and transport equipment (+4.0%) within the euro area, while in non-euro markets, notable gains came from other manufacturing industries including repair and installation of machinery and equipment (+4.9%). By contrast, coke and refined petroleum products posted sharp declines across all markets.

Energy showed a marked slowdown, with electricity and gas supply prices rising just 0.4% year-on-year in August, compared with a 7.9% surge in July.

Meanwhile, construction producer prices for residential and non-residential buildings advanced 0.3% month-on-month, up from 0.1% in July, and 1.3% on the year, compared with 1.0% previously. Prices for roads and railways edged down 0.2% on the month, reversing a 0.2% gain in July, though they rose slightly by 0.1% year-on-year after being flat in July.