Italy’s annual inflation rate surged to 5.4% in October, up from 4.2% in September, driven primarily by rising energy prices. This marks the highest inflation level since August 2023, highlighting ongoing economic pressures in the country.
The increase in energy prices played a significant role in the inflation spike, with their annual growth rate jumping from 22.6% in September to 31.4% in October. Regulated energy products saw a dramatic price surge from 25.8% to 59.5%, while non-regulated energy prices rose from 22.5% to 29.4%, contributing heavily to the overall inflation rate.
Food prices also added to the inflationary pressures, as unprocessed food inflation increased from 5.5% to 7.5%. Meanwhile, prices of processed foods, including alcohol, experienced a smaller annual decline of 0.2%, compared to a previous decline of 0.6%.
Additionally, transport-related service prices rose, with inflation in this sector climbing from 1.6% to 3.1%. The consumer price index, a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, increased by 0.9% in October compared to the previous month, further indicating mounting pressure on household budgets due to rising living costs.