Italy’s annual inflation slowed to 1.2% in October 2025, down from 1.6% in September, confirming preliminary estimates and marking the lowest level in a year. The deceleration was driven by a sharp drop in regulated energy prices (–0.5% vs 13.9% in September), alongside softer increases in unprocessed food (1.9% vs 4.8%), transport services (2.0% vs 2.4%), and processed food (2.5% vs 2.7%). These declines were partly offset by faster price growth in recreational and personal care services (3.3% vs 3.1%) and a smaller drop in unregulated energy (–4.9% vs –5.2%). Meanwhile, Core inflation eased to 1.9% from 2.0%, while goods inflation slowed to 0.2% from 0.6%, and services inflation remained steady at 2.6%. On a monthly basis, consumer prices fell 0.3%, extending the 0.2% decline recorded in September.