Italy’s inflation rate reached 1.7% year-on-year in June, falling below the European Central Bank’s (ECB) target of 2%, according to data released by the Italian National Institute of Statistics (Istat) on Wednesday.
This figure represents a slight increase from May’s rate of 1.6%, primarily driven by rising food prices, as confirmed by the Institute in its preliminary estimate dated June 30.
The inflation index calculated according to the harmonized standards of the European Union (HICP) showed an increase of 1.8%, compared to the 1.7% reported in Istat’s initial estimate.
The Bank of Italy projects an inflation rate of 1.6% for 2025, 1.5% for 2026, and 2% for 2027.
According to the International Monetary Fund (IMF), Italy’s inflation is expected to average around 1.7% for the year 2025 before “converging towards the ECB’s target of 2% in 2026,” as noted in a report released at the end of May.
