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Italy’s Inflation Edges Up to 1.2% in December on Food and Transport

The annual average for 2025 reached 1.5%, remaining below the euro‑area pace.

Overview

  • Preliminary Istat data show consumer prices rose 0.2% on the month and 1.2% on the year in December, returning to October’s rate after declines in September–November.
  • The uptick was driven by higher transport services and food prices, partly offset by a deeper fall in regulated energy; core measures ticked up in December and averaged about 1.8–1.9% in 2025.
  • Grocery and household essentials accelerated to 2.2% year over year in December, with Codacons estimating about €496 in extra 2025 outlays for a typical family.
  • Istat reports stronger household purchasing power and an 11.4% saving rate in Q3 2025, though consumption growth remained weak at 0.3% quarter on quarter.
  • Eurostat’s flash puts euro‑area inflation at 2.0% for December, and a revised HICP classification taking effect on 4 February 2026 will add items such as gambling to the index.