Inflation in Italy
Italy's inflation rates from 2013 to 2022 generally remained low, often below 2%, reflecting the broader economic trends in the Euro area. The country's economic growth was subdued, which contributed to muted price pressures. However, inflation spiked in 2021 and 2022 due to global supply constraints, a bounceback in domestic demand and surging commodity prices in the wake of Russia's invasion of Ukraine.
Harmonized consumer price inflation averaged 1.5% in the ten years to 2022, below the Euro Area average of 1.8%. The 2022 average figure was 8.7%. For more inflation information, visit our dedicated page.
Italy Inflation Chart
Note: This chart displays Inflation (HICP, ann. var. %, aop) for Italy from 2013 to 2022.
Source: EUROSTAT.
Italy Inflation Data
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Inflation (HICP, ann. var. %, aop) | 1.3 | 0.6 | -0.1 | 2.0 | 8.7 |
| Inflation (CPI, ann. var. %, eop) | 1.1 | 0.5 | -0.2 | 3.9 | 11.6 |
| Inflation (HICP, ann. var. %, eop) | 1.1 | 0.4 | -0.2 | 4.2 | 12.3 |
| Inflation (PPI, ann. var. %, aop) | 3.3 | 0.2 | -3.3 | 10.7 | 34.4 |
Harmonized inflation falls to over two-year low in October
Harmonized inflation dropped to 1.9% in October, following September’s 5.6%. October's reading marked the weakest inflation rate since July 2021. The result was driven by moderating price pressures for food and non-alcoholic beverages and easing price pressures for housing and utilities. Moreover, prices for recreation grew at a more subdued pace. In addition, the trend pointed down, with annual average harmonized inflation coming in at 7.9% in October (September: 8.8%). Meanwhile, consumer price inflation fell to 1.7% in October, from the previous month's 5.3%. Finally, harmonized consumer prices increased 0.07% over the previous month in October, slowing down from September's 1.74% increase. October's result marked the weakest reading since July.
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Italian inflation projections for the next ten years from a panel of 36 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Italian inflation.
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