Italy inflation outpaces wage growth in Q2 2026

Data from Istat indicates a shift in economic trends during the second quarter of 2026, as inflation began to outpace contractual wage growth for the first time in ten consecutive quarters. While hourly contractual wages grew by 2.4% on an annual basis, the harmonized index of consumer prices (HICP) rose by 3.0%, leading to a decline in real purchasing power.

In the private sector, average wage growth stood at 2.3%, with specific increases of 1.2% in agriculture, 2.4% in industry, and 2.3% in services. The public administration sector saw a slightly higher increase of 2.7%.

Reports note that the cumulative effect of inflation has left contractual wages approximately 8.6% lower than they were in January 2019. This reversal marks the end of a two-and-a-half-year period where wage increases had successfully kept pace with or exceeded inflation rates.