Italian Producer Inflation Falls to 8-Month Low

The annual industrial producer inflation rate in Italy fell to 0.2% in August of 2025 from 1.6% in the previous month, reflecting the lowest increase in producer prices since the inflationary momentum returned in December of 2024. Prices declined for energy (-0.6%) as the series of supply increases by OPEC+ recently pressured petroleum-based commodities, while the ample availability of LNG in Europe limited inflation from natural gas that has been the forefront of Italian producer inflation since 2022. Prices also fell for intermediate goods (-0.4%), while they rose firmly for consumer goods (2.1%) and capital goods (1%). Excluding energy, annual producer inflation was at 0.8%. From the previous month, producer prices fell by 0.6%.