MNI BRIEF: BOI Raises 25 Inflation To 1.7%, Keeps 26 At 1.5%

The Bank of Italy raised its inflation outlook two tenths for 2025 to 1.7% and kept 1.5% for 2026, it said its projections published on Friday.

The rate for 2027 was revised down a touch to 1.9%, while the increase between 2026 and 2027 will be “largely due to ETS2,” a spokesman told MNI asked in reference to an EU trading emissions regime. Core inflation was seen 0.1 percentage points higher this year at 1.9% and unchanged for 2026 and 2027 at 1.6%.

The BOI kept its growth outlook for 2025 unchanged at 0.6% while revising down the number for 2026 0.2 percentage points to 0.6%. It kept 0.7% for 2027. (See MNI SOURCES: Doubts Over EU Carbon Pricing Key For ECB Rates)