Italian Inflation Jumps to 4.1% in September, Highest in Three Years

Italy's EU-harmonised consumer price index rose 2.0% month-on-month in September 2026, pushing the annual inflation rate to 4.1% from 3.2% in August, the highest reading in three years, statistics agency ISTAT reported Wednesday. The surge, driven by elevated energy costs tied to Middle East turmoil, exceeded a Reuters analyst median forecast of 3.8% annually and 1.8% monthly. The domestic NIC index rose 0.7% month-on-month and 4.2% annually, up from 3.3% in August. Core inflation, excluding fresh food and energy, accelerated to 1.6% year-on-year on the HICP measure from 1.4%. The sharp increase complicates Prime Minister Giorgia Meloni's efforts to contain energy costs for households and businesses amid public discontent over the cost of living, with a national election due in 2027.