Istat Reports 5.4% Inflation in October 2026, as Italian Economy Stagnates

Istat reported that Italy's inflation rate reached 5.4% in October 2026, marking a significant increase from the previous month. The monthly inflation rate was 0.9%, contributing to the annual rate of 5.4%. The report highlights continued pressure on consumer prices, driven by rising energy and food costs. The core inflation rate, excluding volatile items like energy and food, remained stable at 3.1%. The Italian government's growth forecast for the 2026 economy remained unchanged at 0.8%, despite the stagnant third quarter of 2026, with no GDP growth recorded. The inflation data was released by Istat on October 30, 2026, as part of its regular economic reporting cycle. The report notes that inflationary pressures are largely driven by global supply chain disruptions and rising energy prices. The Italian Central Bank is closely monitoring the inflation data to assess the effectiveness of its monetary policy. The inflation rate in October 2026 was the highest recorded in the first half of 2026, surpassing the previous record of 5.2% in May. The government is expected to respond with targeted fiscal measures to mitigate the impact of inflation on households. The inflation data was released alongside the government's economic outlook, which remains cautious about the outlook for 2027.