Italy's annual consumer price inflation inched higher to 1.7% in June of 2025 from 1.6% in the previous month, in line with market expectations. In turn, the EU-harmonized was slightly below market expectations at 1.7% to hold below the ECB's 2% target for the second straight month. Inflation rose for both non-processed (4.2% vs 3.5% in May) and processed food (3% vs 2.7%), in addition to transportation services (2.9% vs 2.6%). Additionally, deflation was softer for durable goods (-0.8% vs -1.1%). On the other hand, prices slowed for regulated energy (22.7% vs 29.3%) and decreased faster for unregulated energy (-4.6% vs -4.3%). The core inflation rate, which excludes volatile and often exogenous fresh food and energy subindices, rose to 2.1% from 1.9% in May. From the previous month, Italian consumer prices rose by 0.2%.