Bonds & Rates
Home›Bonds & Rates›Economy›Italy CPI rises 3.3% y/y in August on higher energy co…
Italy CPI rises 3.3% y/y in August on higher energy costs
August inflation lifted headline CPI 0.5% month over month, with regulated and non-regulated energy climbing 18.8% and 16.9% annually.
Italy’s inflation accelerated in August 2026, with annual CPI rising 3.3% year over year, up from 2.9% in the prior month, according to data released by Istat and highlighted by Forexlive.
The monthly CPI increase was 0.5% versus July, and the acceleration was driven primarily by energy prices. Forexlive cited that non-regulated energy products climbed 16.9% annually, up from 11.4% in July, while regulated energy products rose 18.8% year over year, compared with 14.8% in the previous month.
Energy also contributed to the overall monthly gain through specific price increases: regulated energy products rose 3.2% month over month and non-regulated energy products increased 2.8%. At the same time, some service categories cooled, with inflation for recreation, repair, and personal care slowing to 2.6% from 3.0%, and transport-related services decelerating to 0.9% from 1.6%.
Separately, the goods sector saw stronger inflation, with goods rising 4.1% annually versus 3.2% in July, while services inflation eased to 2.4% from 2.7%. Forexlive said the pattern suggests energy-related pressures are concentrated in physical products rather than labor-intensive services, and noted the data could support the ECB’s cautious approach to further tightening.