Italian Producer Prices Fall at Faster Pace

Industrial producer prices in Italy fell by 1.4% year-on-year in December 2025, slipping further from a 0.2% decline in the previous month. Domestic producer prices decreased 2%, with gains in basic pharmaceutical products and pharmaceutical preparations (3.4%), metallurgy and manufacture of metal products excluding machinery and equipment (2.9%), and other manufacturing industries (2.9%), being offset by lower costs for coke and refined petroleum products (-7.9%) and electricity and gas supply (-6.9%). Meanwhile, foreign prices rose 0.3%, led by the food, beverages, and tobacco industries (4.6%) and transport equipment (3.5%) in the euro area, and other manufacturing industries, repair and installation of machinery and equipment (9.1%) in non-euro area countries. Excluding energy, domestic producer prices rose 0.9% year-on-year, slightly easing from 1% in November. On a monthly basis, producer prices fell 0.7% in December, reversing a 1% gain in the previous month.