Business · Economy · 5 hrs ago
Italy's inflation reaches 5.4% as energy costs surge and growth stalls
Italy's inflation rose to 5.4% in October, its highest level in more than three years, according to preliminary figures from the national statistics agency, Istat.
Energy prices were up 31.4% from a year earlier, pushing up household bills and transport costs.
The squeeze comes as contract wages are rising more slowly than prices, reducing what many people can afford.
Italy's economy also recorded no growth in the third quarter, adding to concern about the outlook.
High fuel costs have also driven protests by farmers and truckers, and road blockades disrupted supplies of mozzarella and pasta in parts of southern Italy.
The government says an energy-bill measure could bring relief from January 1, with the proposal due before the cabinet next week.
Italy’s annual inflation rate rose to 5.4% in October, up from 4.2% in September and its highest level since August 2023.
Energy prices rose 31.4% year on year, while regulated gas and electricity bills rose 59.5%.
Gross domestic product was flat in the third quarter, with annual growth at 0.8%.
Contract wages rose 2.5% year on year in September, less than the inflation rate reported for that month.
Officials and consumer groups warned that rising costs are putting pressure on households and may weigh on spending.
- Who
- Italian households are facing rising prices. The data were reported by Istat.
- What
- Annual inflation reached 5.4% in October as GDP was flat in the third quarter.
- When
- The figures were published on October 30, 2026.
- Where
- Italy.
- Why
- Rising energy costs were the main driver of inflation. Istat cited falling industrial output and negative foreign demand as weighing on GDP.
This story does not have two clearly opposing sides.
Italy’s annual inflation rate was 4.2%.
Inflation rose to 5.4%, while GDP was flat compared with the previous quarter.
Istat’s preliminary inflation figures were reported.
The energy-bill decree was expected to go before the Council of Ministers.
The energy-bill decree could begin providing relief to households and businesses.
- Annual inflation
- 5.4% in October
- Energy prices
- Up 31.4% year on year
- Regulated gas and electricity bills
- Up 59.5% year on year
- Third-quarter GDP
- No change from the previous quarter
- Contract wages
- Up 2.5% year on year in September
4 sources
Inflazione, i prezzi in aumento del 5,4%. Il presidente Mattarella: tutelare i cittadini
Italy’s inflation hits 5.4%, outpacing the U.S. and China, as a farmers’ revolt empties shelves of pasta and mozzarella
Il caro energia fa danni, vola l'inflazione e la crescita si ferma
What people are saying
Inflation and sluggish wage dynamics are attacking citizens’ standard of living
a dramatic consequence
The cost of energy is a priority