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Istat Confirms May Inflation Rises to 3.2%

Higher fuel and hospitality prices pushed the rate up, with core inflation and the household shopping basket remaining relatively muted.

Overview

  • Istat confirmed on Tuesday that consumer prices in May rose 0.4% month‑on‑month and 3.2% year‑on‑year, the strongest annual rate since 2023.
  • The agency said the acceleration reflected large gains in non‑regulated energy such as petrol and diesel, regulated energy and gas, transport services, and recreational and personal care services.
  • Core inflation, which excludes energy and fresh food, was revised to 1.7% annually, a smaller rise than the preliminary estimate and a sign that price pressure is concentrated rather than broad‑based.
  • Restaurants and accommodation recorded a sharp monthly jump and accounted for just over half of May’s 0.4% monthly increase, while the consumer 'shopping basket' slowed to 1.9% from April.
  • Industry group Elettricità Futura and Istat said the energy effect mainly reflects hydrocarbons and gas rather than higher household electricity bills, a distinction that matters for short‑term household bills and policy signals.