Italy's Inflation Remains Low despite Lifting of Price Controls

The relatively low inflation rate in January is significant given that the month is the first since the price controls in Italy's "anti-inflation quarter" expired. The initiative artificially reduced consumer prices on a basket of basic necessities over the final three months of 2023. The government reserved the right to continue the terms of the "anti-inflation quarter" into this year but it chose not to do so.

ISTAT said the main factors pushing prices in the country higher in January were transportation-related services which climbed by 4.3 percent compared to 3.7 percent in December and unprocessed food goods, which climbed by 7.5 percent, up from 7.0 percent a month earlier.

Prices for energy goods -- which sparked record-high levels of inflation in 2022 -- continued to decline in January, down 21.4 percent from last year's same period.

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