Italy Producer Price Inflation At 19-Month Low On Lower Energy Costs

Italy’s producer price inflation eased at the start of the year to the lowest level in just over one-and-a-half years amid a sharp slowdown in energy prices, figures from the statistical office Istat showed on Friday.

The producer price index climbed 11.1 percent year-over-year in January, much slower than the 31.7 percent rise in December.

Further, this was the slowest inflation rate since June 2021, when prices had risen 9.1 percent.

The downward trend in inflation was mainly due to the sharp decline in the domestic market for electricity and gas supply prices, favourably conditioned by the collapse in the price of natural gas, the agency said.

Overall energy prices rose 10.8 percent yearly in January, down significantly from the 80.2 percent growth seen in December.

Prices for intermediate and consumer goods surged by 9.9 percent and 10.2 percent, respectively.

Domestic market producer prices grew 11.6 percent in January compared to last year, and those in the foreign market gained 8.4 percent.

On a monthly basis, producer prices declined 7.5 percent, reversing a 2.9 percent increase in December.

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