Inflation in 2026 at 3.1%, price expectations rise says BoI

Italian inflation will hit 3.1% in

2026 amid rising price expectations, the Bank of Italy said

Friday.

In Italy, 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 following Russia's invasion of Ukraine."

The companies "forecast a 2.4% increase in their price lists

over the next twelve months," it says.

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