Italy’s Inflation Rises Above 4% as Energy Costs Surge

Italy’s EU-harmonised consumer prices rose 2.0% month-on-month in September, pushing annual inflation to 4.1%, up sharply from 3.2% in August. The increase was driven largely by soaring energy costs linked to turmoil in the Middle East.

The latest figure was above the 3.8% median forecast from a Reuters poll of 17 analysts and marked Italy’s highest annual inflation rate in three years. Italy’s domestic consumer price index also increased 0.7% from August and was up 4.2% year-on-year.

The rise adds pressure on Prime Minister Giorgia Meloni’s government as it seeks measures to reduce energy costs for households and businesses. Core inflation, excluding fresh food and energy, also accelerated to 1.6% from 1.4% in August.

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