The Bank of Italy published the November edition of “The Italian economy in brief,” showing a halt in quarterly economic growth and a further rise in inflation. Gross domestic product was unchanged in the third quarter of 2026, following growth of 0.2% in the second quarter. Preliminary October data put annual inflation, measured by the harmonized index of consumer prices, at 5.6%, up from 4.2% in September. Inflation excluding food and energy increased to 2.3% from 1.9%.
Government borrowing costs also rose. Italy’s average benchmark government bond yield at 10 years increased to 4.68% in October from 4.36% in September. Separately, banking system data for June 2026 show a weighted average common equity tier 1 ratio of 15.49% and a liquidity coverage ratio of 174.54%.
The report includes the bank’s previously published October baseline projections, which put GDP growth at 0.9% in 2026, 0.7% in 2027 and 0.8% in 2028. Annual inflation is projected to average 3.2% in 2026 before declining to 2.4% in 2027 and 1.7% in 2028.