Bank of Italy: Inflation in 2026 to hit 3.1%, price expectations rise

Due to the war in Iran and its impact on energy prices, "consumer inflation is expected to rise to 3.1% on average this year, mainly reflecting the rise in energy prices; it is expected to return to 2% over the next two years," the Bank of Italy wrote in its economic bulletin after inflation reached 3% in the second quarter, despite a "limited" impact on utility bills and the temporary reduction in fuel excise duties.

"Households' and businesses' short-term inflation expectations have increased, although they remain below the levels observed in March 2022," Italian News Aency (ANSA) reported, citing the official data.

The companies "forecast a 2.4% increase in their price lists over the next twelve months," it said.

Earlier, it was reported that inflation across the Gulf Cooperation Council (GCC) countries remained below 2 percent for a second consecutive year in 2025.