Italy’s annual inflation rate surged to 5.4% in October, a significant increase from 4.2% in September, reaching its highest level since August 2023. This rise in inflation is primarily attributed to escalating energy prices, which have been impacted by geopolitical tensions, including the conflict involving Iran.
The energy sector experienced a notable acceleration, with the annual growth rate of energy prices jumping from 22.6% in September to 31.4% in October. Specifically, prices of regulated energy products soared from 25.8% to 59.5%, while non-regulated energy prices rose from 22.5% to 29.4%.
In addition to energy, food prices also contributed to inflationary pressures. Unprocessed food inflation increased from 5.5% to 7.5%, and there was a smaller annual decline in the prices of processed food, including alcohol, which fell by 0.2% compared to a 0.6% decline previously.
Transport-related service prices saw an inflation rise from 1.6% to 3.1%, adding to the overall increase in living costs. The consumer price index in Italy climbed by 0.9% in October compared to the previous month, underscoring the continued strain on household budgets due to rising costs.