The annual inflation rate in Italy inched higher to 1.7% in June of 2025 from 1.6% in the previous month, in line with the preliminary estimate and initial market expectations. In turn, the EU-harmonized inflation rate rose to 1.8% from 1.7% in the earlier period, revised higher from the flash estimate of 1.7% but in line with the preliminary estimates. Inflation rose for both non-processed (4.2% vs 3.5% in May) and 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 (22.6% vs 29.3%), potentially impacting the slowdown for housing and utilities cost (2.4% vs 3.9%). The core inflation rate, which excludes volatile and often exogenous fresh food and energy subindices, rose to 2% from 1.9% in May, revised lower from the initial flash estimate of 2.1%. From the previous month, Italian consumer prices rose by 0.2%.