Italy's inflation jumps to highest since 2023 on energy price surge

Italy’s annual inflation rate rose sharply in April, climbing to its highest level since 2023, as energy prices rebounded strongly amid supply disruptions linked to the Iran war, according to final data released Friday by the National Institute of Statistics (ISTAT), News.Az reports, citing Anadolu.

The national consumer price index increased by 2.7% year-on-year in April, up from 1.7% in March and slightly below the preliminary estimate of 2.8%.

On a monthly basis, consumer prices rose by 1.1%, coming in below expectations of a 1.2% increase but significantly higher than the 0.5% gain recorded in March, marking the strongest monthly rise since October 2022.

The acceleration was mainly driven by energy prices, which surged by 9.2% annually after having declined by 2.1% in March.

Unregulated energy prices increased by 9.6% year-on-year in April, compared with a 2% drop in March, while regulated energy prices rose by 5.3% after falling by 1.6% in the previous month.

Energy markets have faced strong pressure since the outbreak of the Iran war, with the closure of the Strait of Hormuz disrupting one of the world’s most important routes for oil and liquefied natural gas shipments.

The strait, located between Iran and Oman, serves as a key passage for crude oil, petroleum products, and LNG exports from Gulf producers to global markets.

The disruption has driven up energy costs across Europe, adding pressure on import-dependent economies such as Italy, where fuel, electricity, and transport expenses quickly feed into consumer prices.

Goods inflation also rose sharply to 3.1%, up from 0.8% in March, supported by faster increases in unprocessed food prices, which climbed 5.9% year-on-year after a 4.7% rise.

In contrast, services inflation slowed to 2.4% from 2.8%, reflecting weaker price growth in recreational, cultural, and personal care services, which eased to 2.6% from 3%, as well as transport services, which slowed to 0.6% from 2.2%.

Core inflation, excluding energy and fresh food, eased to 1.6% in April from 1.9% in March, while inflation excluding energy alone decreased to 1.9% from 2.1%.

The harmonized index of consumer prices, used for European Union comparisons, increased by 2.8% year-on-year in April, accelerating from 1.6% in March but slightly below the preliminary estimate of 2.9%.

The institute also stated that inflation acquired for 2026 stood at 2.3% for the headline index and 1.3% for the core component.

News.Az 

By Nijat Babayev