The Bank of Italy published its October statistical snapshot of the Italian economy, showing modest economic growth alongside a marked rise in headline inflation. Gross domestic product increased 0.2% quarter on quarter in the second quarter of 2026, after 0.3% growth in the first quarter. Preliminary annual inflation reached 4.1% in September, up from 3.2% in August, while inflation excluding energy and food was 1.8%. The Bank of Italy’s June projections remain at 0.5% growth and 3.1% inflation for 2026. Italy recorded a EUR 6.6 billion current account surplus in the first seven months of 2026, down from EUR 10.4 billion in the same period of 2025. Banking system indicators for June included a weighted average common equity tier 1 ratio of 15.49%, liquidity coverage ratio of 174.54% and net stable funding ratio of 131.72%. Official fiscal targets put the 2026 deficit at 2.9% of GDP and gross public debt at 138.1%, while the average yield on 10-year government bonds rose to 4.36% in September from 3.99% in August.
Bank of Italy publishes October economic snapshot showing 4.1% inflation and 0.2% second quarter growth
The Bank of Italy’s October snapshot shows second quarter GDP growth of 0.2% and preliminary annual inflation of 4.1% in September, although inflation excluding energy and food remained at 1.8%. Banking liquidity and capital ratios remained above 100% and 15%, respectively, while the official 2026 fiscal targets put the deficit at 2.9% of GDP and public debt at 138.1%.