Finance
Italy Jan EU-harmonised CPI accelerates to 1.7% y/y, above forecast
Published by Global Banking and Finance Review
Posted on February 3, 2025
2 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 3, 2025
2 min readLast updated: January 26, 2026
Italy's inflation rate rose to 1.7% in January, exceeding expectations. Energy prices were a significant factor, with core inflation at 1.9%.
ROME (Reuters) - Italian EU-harmonised consumer prices (HICP) fell 0.7% month-on-month in January but the annual inflation rate accelerated to 1.7% from 1.4% in December, preliminary figures showed on Monday.
The reading was significantly higher than expected. A Reuters survey of nine analysts had pointed to a 1.1% month-on-month decrease and a 1.4% year-on-year rise.
Official statistics agency ISTAT also reported that in January the main domestic price index (NIC), was up 0.6% on the month and up 1.5% annually, following a 1.3% annual rate the previous month.
The acceleration in the annual inflation rate was mainly due to energy prices and, to a lesser extent, to prices of processed food, whereas some service sector prices slowed down, ISTAT said.
Core inflation (net of fresh food and energy) was running at 1.9% year-on-year on the HICP index in January, up from 1.8% in December.
In the euro zone, inflation accelerated slightly last month to 2.5% annually from 2.4% in December.
ISTAT gave the following preliminary breakdown:
Jan Dec Nov
The EU-harmonised index (HICP):
Monthly change -0.7 +0.1 -0.1
Year-on-year inflation +1.7 +1.4 +1.5
Index (base 2015=100) 122.5 123.4 123.3
The NIC index:
Monthly change +0.6 +0.1 -0.1
Year-on-year inflation +1.5 +1.3 +1.3
Index (base 2015=100) 121.9 121.2 121.1
ISTAT gave the following sector-by-sector breakdown for the HICP in January:
Sector m/m yr/yr
Food +1.1 +2.4
Alcoholic drinks, tobacco +0.9 +2.5
Clothing -19.0 +1.0
Housing, electricity, fuel +2.3 +0.7
Domestic goods -0.2 +0.4
Health spending +0.6 +2.5
Transport -0.2 +1.0
Communications +0.1 -5.4
Recreation +1.1 +2.3
Education +0.1 +3.0
Hotels, restaurants +0.2 +2.9
Other goods, services -0.4 +2.6
(Reporting by Antonella Cinelli, editing by Gavin Jones)
The annual inflation rate in Italy accelerated to 1.7% in January, up from 1.4% in December.
The acceleration in the annual inflation rate was mainly due to increases in energy prices and, to a lesser extent, processed food prices.
Core inflation, which excludes fresh food and energy, was at 1.9% year-on-year on the HICP index in January, up from 1.8% in December.
The EU-harmonised consumer prices (HICP) fell by 0.7% month-on-month in January.
In the euro zone, inflation slightly accelerated to 2.5% annually in January, compared to 2.4% in December.
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