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Italy’s Inflation Rate Drops to 1.6% in May as Shopping Basket Inflation Hits 2.7%

Istat’s May update noted easing core inflation with energy price moderation alongside sustained food cost pressures.

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Overview

  • Annual inflation in Italy slowed to 1.6% in May from 1.9% in April, with consumer prices down 0.1% month-on-month.
  • Essential goods costs including food, household and personal care rose 2.7% year-on-year, up from 2.6% in April.
  • Processed food inflation accelerated to 2.7% in May from 2.2%, bolstering overall shopping basket pressures.
  • Regulated energy price growth eased to 29.3% and non-regulated energy prices dropped by 4.3%, driving the broader inflation slowdown.
  • Transport services inflation fell to 2.6% from 4.4% and Istat’s acquired inflation for 2025 stands at 1.3% for the general index and 1.6% for core measures.