Inflation in Italy hits 32-month high as unemployment falls to record low

Consumer price inflation in Italy rose to its highest level in more than two and a half years in May, while unemployment in April dropped to its lowest level on record, according to new official data.

Figures released by Italy’s national statistics agency, as reported by dpa, show that preliminary inflation rose to 3.2% in May, up from 2.7% in April. This marks the highest rate since September 2023.

The increase was driven largely by regulated energy prices, which surged by 12.6%, while transport costs also rose, increasing from 0.6% to 1.8%.

Core inflation, which excludes energy and unprocessed food, edged up to 1.8% from 1.6%.

On a monthly basis, consumer prices increased by 0.4%, following a 1.1% rise in April. Analysts had expected a much smaller increase of 0.1%.

EU-harmonised inflation (HICP) stood at 3.3%, compared with 2.8% the previous month.

At the same time, unemployment in Italy fell in April to 5.1% from 5.2% in March, the lowest level since records began in 2004. The number of unemployed people declined by 18,000 to 1.31 million, while the employment rate rose to 63.1%.