Italy's June 2026 inflation eases to 3% amid rising energy costs

Preliminary data from Istat show that Italy's national consumer price index was flat on a monthly basis in June 2026 and rose 3 % year‑on‑year, down from 3.2 % in May. The slowdown is driven by lower price growth for unprocessed food (from 5.5 % to 4.5 % annual), recreation, cultural and personal‑care services (from 3.0 % to 2.7 %) and transport services (from 1.7 % to 1.1 %). Energy prices moved in the opposite direction, with regulated fuels up 9.3 % and non‑regulated fuels up 12.9 % year‑on‑year. Core inflation (“inflation of the basket”) fell to 1.6 % yoy, and the overall acquired inflation for 2026 remained at 2.6 %.

Eurostat’s flash estimate shows the euro‑area inflation rate fell to 2.8 % yoy in June, with core inflation at 2.4 %; energy inflation eased to 8.7 % from 10.8 % in May. The data helped lift European equity markets, with Italy’s FTSE MIB leading gains and the market pricing in a possible easing of the European Central Bank’s policy stance.

Industrial production prices in May slipped 0.2 % month‑on‑month while remaining 7.3 % higher than a year earlier, reflecting mixed pressures across sectors. A collective wage agreement for the metal‑mechanical sector linked salary floors to the 1.9 % IPCA figure, confirming that recent wage increases already match the official inflation rate. Consumer‑rights groups, however, warned that the decline is insufficient and called for further cuts to fuel and energy prices.