Italy’s annual inflation rate has climbed to 5.4% in October, marking a significant increase from 4.2% in September and reaching its highest level since August 2023. This surge is primarily driven by escalating energy prices, which have been affected by the ongoing conflict in Iran.
The cost of energy has seen a substantial rise, with annual growth accelerating from 22.6% in September to an alarming 31.4% in October. Prices of regulated energy products soared from 25.8% to 59.5%, while non-regulated energy prices also jumped from 22.5% to 29.4%, contributing heavily to the inflationary pressure.
In addition to energy, food prices have also played a role in the rising inflation. The inflation rate for unprocessed food increased from 5.5% to 7.5%. Meanwhile, processed food, including alcohol, experienced a smaller annual decline in prices, dropping by 0.2% compared to the previous decline of 0.6%.
Transport-related services saw price inflation rise from 1.6% to 3.1%, further impacting the overall cost of living for Italian households. The cumulative effect of these increases is reflected in Italy’s consumer price index, which rose by 0.9% in October compared to the previous month, underscoring the mounting financial pressure on consumers.