Italy inflation hits highest level since 2023 in April on energy price jump

Italy’s annual inflation rate accelerated sharply in April, reaching its highest level since 2023 as energy prices rebounded strongly amid supply disruptions caused by the Iran war, final data from the National Institute of Statistics (ISTAT) showed Friday.

The national consumer price index rose 2.7% year-on-year in April, up from 1.7% in March and slightly below the preliminary estimate of 2.8%.

On a monthly basis, consumer prices increased 1.1%, below expectations for a 1.2% rise but well above the 0.5% gain recorded in March, marking the strongest monthly increase since October 2022.

The acceleration was driven largely by energy prices, which rose 9.2% annually after falling 2.1% in March.

Unregulated energy prices jumped 9.6% year-on-year in April, compared with a 2% decline in March, while regulated energy prices increased 5.3% after a 1.6% fall in the previous month.

Energy markets have been under severe pressure since the outbreak of the Iran war, with the closure of the Strait of Hormuz disrupting one of the world’s most critical oil and liquefied natural gas shipping routes.

The strait, located between Iran and Oman, is a key passage for crude oil, petroleum products and LNG shipments from Gulf producers to global markets.

The disruption has pushed energy costs higher across Europe, increasing pressure on import-dependent economies such as Italy, where fuel, electricity and transport costs feed quickly into consumer prices.

Goods inflation also accelerated sharply to 3.1% from 0.8% in March, supported by faster growth in unprocessed food prices, which rose 5.9% annually after a 4.7% increase.

By contrast, services inflation slowed to 2.4% from 2.8%, reflecting weaker price increases for recreational, cultural and personal care services, which eased to 2.6% from 3%, and transport services, which slowed to 0.6% from 2.2%.

Core inflation, excluding energy and fresh food, slowed to 1.6% in April from 1.9% in March, while inflation excluding energy alone eased to 1.9% from 2.1%.

The harmonized index of consumer prices, used for EU comparisons, rose 2.8% year-on-year in April, accelerating from 1.6% in March but slightly below the preliminary estimate of 2.9%.

The institute said inflation acquired for 2026 stood at 2.3% for the headline index and 1.3% for the core component.