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Italy Inflation Holds at 1.6% as New U.S. Tariffs Slam Exports

Household staples rose 3.1% year over year, highlighting persistent pressure despite stable headline prices.

Overview

  • Istat confirmed September consumer prices at -0.2% month on month and +1.6% year on year, with core inflation easing to 2.0%.
  • Prices for the grocery basket increased 3.1% from a year earlier, while high-frequency purchases accelerated to 2.6%.
  • Transport services and unprocessed foods slowed, regulated energy accelerated to +13.9%, and Naples posted the highest city rate at 2.4%.
  • In August exports fell 1.1% year on year in value, including a 21.1% drop to the United States after new tariffs took effect, while sales to EU partners rose with notable gains to France, Spain, the Netherlands, the UK and Belgium.
  • Pharmaceuticals, metals and refined petroleum led sector gains as fashion, leather goods and machinery declined, the trade surplus reached €2.05 billion, and industry groups report U.S.-bound agri‑food exports down about 23% with wine seen falling by more than 30%.