Italy’s annual inflation rate rose sharply to 2.8% in April 2026, up from 1.7% in March and above market expectations, according to preliminary estimates. This marking the highest level since 2023, as increasing energy prices reflect Italy’s reliance on imported gas for electricity and heating, with prices rebounding for both unregulated (9.9% vs -2%) and regulated (5.7% vs -1.6%). Goods prices surged (3.2% versus 0.8%), as unprocessed food inflation accelerated to 6% from 4.7%. Services' inflation slowed (2.4% vs 2.8%), easing for recreational, cultural and personal care services (2.6% vs 3%) and transportation (0.5% vs 2.2%). In contrast, housing-related inflation edged up (2.5% vs 2.2%). Core inflation, which excludes energy and fresh food, eased to 1.6% from 1.9%, while inflation excluding energy alone slowed less to 2% from 2.1%. The HIPC increased 2.9% year-on-year and 1.7% month-on-month. On a monthly basis, consumer prices increased 1.2%, the highest level since October 2022.