2026.02.2309:00:00UTC+00Italy’s Core Inflation Gauge Plunges: CPI ex Tobacco Slumps 17.0% YoY in January 2026

Italy’s CPI ex Tobacco index recorded a dramatic year‑over‑year decline in January 2026, dropping to -17.0% compared with a 1.1% annual increase registered in December 2025. The figures, updated on 23 February 2026, highlight a sharp reversal in underlying price dynamics excluding tobacco products.

Both readings are calculated on a year‑over‑year basis, comparing each month with the same month a year earlier. While December’s 1.1% print suggested modest core inflation pressures at the end of 2025, January’s move to -17.0% points to a strong disinflationary—or potentially deflationary—shift in prices for the basket of goods and services covered by the CPI ex Tobacco measure.

The abrupt swing in this key indicator will be closely watched by policymakers and markets, as it may signal a significant change in underlying price trends at the start of 2026, with potential implications for monetary policy, consumer purchasing power, and broader economic sentiment in Italy.