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 mo