Italy's PPI Drops 0.7% MoM, Consumer Confidence Hits 97.2; French Consumer Confidence Rises to 89

Recent economic data from Italy and France indicate modest shifts in consumer confidence and inflation metrics. Italy's Producer Price Index (PPI) fell by 0.7% month-over-month in June 2025, improving from a previous decline of 2.2%, while the year-over-year PPI rose by 1.7%, down from 2.6% previously. The Harmonized Index of Consumer Prices (HICP) in Italy showed a preliminary year-over-year increase of 1.7% in June, slightly below the forecast of 1.8%, with a month-over-month rise of 0.2%. Final July figures confirmed these trends with the HICP rising 1.8% year-over-year and 0.2% month-over-month. Italy's Consumer Price Index (CPI) preliminary and final readings for June and July remained steady at 1.7% year-over-year and 0.2% month-over-month. However, Italian retail sales weakened, with a 0.4% month-over-month decline in July and a 1.3% year-over-year increase, down from 3.7% previously. Consumer confidence in Italy improved to 97.2 in July, surpassing the forecast of 95.9 and the previous 96.1. Manufacturing business confidence also rose slightly to 87.8, above expectations of 87.5. In France, consumer confidence for July reached 89, exceeding forecasts and the prior reading of 88, suggesting a modest improvement in sentiment.