Rome: Italy's annual inflation rate accelerated sharply in April, reaching its highest level since 2023 as energy prices rebounded strongly amid supply disruptions caused by the Iran war, final data from the National Institute of Statistics (ISTAT) showed Friday. The national consumer price index rose 2.7% year-on-year in April, up from 1.7% in March and slightly below the preliminary estimate of 2.8%.

According to Anadolu Agency, consumer prices increased 1.1% on a monthly basis, below expectations for a 1.2% rise but significantly higher than the 0.5% gain recorded in March, marking the strongest monthly increase since October 2022. The surge was primarily driven by energy prices, which rose 9.2% annually after declining 2.1% in March.

Unregulated energy prices experienced a 9.6% year-on-year increase in April, following a 2% decline in March, while regulated energy prices rose 5.3% after a 1.6% drop the previous month. Energy markets have faced intense pressure since the outbreak of the Iran war, with the closure of the Strait of Hormuz disrupting crucial oil and liquefied natural gas shipping routes.

The strait, situated between Iran and Oman, serves as a vital passage for crude oil, petroleum products, and LNG shipments from Gulf producers to global markets. The disruption has elevated energy costs across Europe, placing additional strain on import-dependent economies like Italy, where fuel, electricity, and transport costs rapidly impact consumer prices.

Goods inflation also increased significantly to 3.1% from 0.8% in March, driven by faster growth in unprocessed food prices, which rose 5.9% annually following a 4.7% increase. In contrast, services inflation decelerated to 2.4% from 2.8%, with slower price increases observed in recreational, cultural, and personal care services, which eased to 2.6% from 3%, and transport services, which slowed to 0.6% from 2.2%.

Core inflation, excluding energy and fresh food, decreased to 1.6% in April from 1.9% in March, while inflation excluding energy alone eased to 1.9% from 2.1%. The harmonized index of consumer prices, used for EU comparisons, rose 2.8% year-on-year in April, accelerating from 1.6% in March but slightly below the preliminary estimate of 2.9%.

The institute reported that inflation acquired for 2026 stood at 2.3% for the headline index and 1.3% for the core component.