Annual Inflation Overview

In February, Italy witnessed a notable increase in its annual inflation rate, reaching 1.7% compared to the same period last year, up from January's 1.5%. This preliminary report, released by the Italian National Institute of Statistics (Istat) on Friday, slightly exceeded analysts' forecasts. On a month-to-month basis, there was a 0.2% rise in prices.

Key Drivers Behind the Inflation Spike

The primary factors contributing to this uptick in consumer prices were the escalated costs of regulated energy products. Additionally, both unprocessed and processed food items played a minor role in this increase. Despite these hikes, the report also noted a decrease in prices for transport-related services and communication services during the same timeframe. The core inflation rate, which excludes energy and unprocessed food, remained steady at 1.8%.

Harmonized Index of Consumer Prices (HICP)

The HICP, a measure used to compare inflation across European Union countries, showed a 1.7% increase year-over-year and a modest 0.1% rise month-over-month.