Italy's inflation rate rose to 3.2% in May, reaching a more than two-year high

⑴ Italy's overall inflation rate in May rose from 2.7% in the previous month to 3.2%, in line with market expectations and marking the highest level since September 2023.⑵ This increase aligns with the trend seen in other major Eurozone economies, as the outbreak of conflict in the Middle East led to tightened oil and gas supply, pushing up price growth for energy-importing countries.⑶ Both unregulated energy prices (rising from 9.6% to 12.6%) and regulated energy prices (from 5.3% to 5.8%) accelerated. Similarly, inflation rates for transport services as well as recreational and cultural services were higher.⑷ The core inflation rate, excluding food and energy prices, increased from 1.6% in the previous month to 1.8%.⑸ Month-on-month, Italy's Consumer Price Index rose by 0.4%, a slowdown compared to the 1.1% rise in April.