Italy's national consumer price index for July 2024 indicated a monthly increase of 0.5% and an annual rise of 1.3%. The inflation was primarily driven by higher costs in regulated energy products, tobacco, and personal care services. In contrast, the prices of unprocessed foods and various services saw a decline. Core inflation remained stable at 1.9%.
In France, consumer prices also saw a slight uptick of 2.3% in July 2024, influenced by a significant rise in energy prices, particularly gas. This increase was somewhat mitigated by falling prices in services and food. Projections suggest salary increases of around 3.6% for 2025, surpassing inflation rates, despite many organizations offering lower raises than in previous years due to rising costs.
Both countries show a complex inflation landscape, with energy prices playing a pivotal role. While Italy experiences stable core inflation, France anticipates inflation falling below 2% by the end of 2024, driven by energy price stabilization and other economic factors.
