Italy’s annual consumer price inflation eased to 1.6% in May 2025, below the preliminary estimate of 1.7% and down from 1.9% in April. This marks the lowest inflation rate since February and remained below the European Central Bank’s 2% target for the 20th consecutive month, reinforcing signs of persistent disinflationary pressures in the eurozone’s third-largest economy.
The slowdown was mainly driven by softer price growth for regulated energy goods (29.3% vs 31.7% in April), unprocessed food (3.5% vs 4.2%), recreational, cultural, and personal care services (3.1% vs 3.6%), and transport-related services (2.6% vs 4.4%). Meanwhile, prices continued to decline for non-regulated energy goods (-4.3% vs -3.4%), and durable goods (-1.1% vs -1.4%). Conversely, inflation picked up for processed food products (2.7% vs 2.2%). On a monthly basis, consumer prices slipped 0.1%, compared to a 0.1% increase in April and an initial estimate of a flat reading.
