Italy's Inflation Rate Rises to 2% in March

According to the preliminary report released by the National Statistics Office (INE) on Monday, Italy witnessed an annual inflation rate of 2% in March. This marks a noticeable increase from the previous rate of 1.6%, signaling a significant shift in the economic landscape.

Key Drivers Behind the Inflation Surge

The report highlights that the primary contributors to this uptick were the rising prices of non-regulated energy products, along with slight increases in the costs of tobacco, unprocessed food, and services related to communication and recreation. Conversely, there was a noted moderation in the prices of regulated energy products and transport-related services.

Core Inflation and HICP Insights

Interestingly, the annual core inflation, which excludes energy and unprocessed food, remained steady at 1.7%. Meanwhile, inflation excluding energy saw a minor increase to 1.8%. Additionally, the harmonized index of consumer prices (HICP) experienced a 1.6% month-over-month rise, largely attributed to the conclusion of winter sales on clothing and footwear.