ROME, ITALY / RankWire.AI / – Italy’s annual consumer inflation rate eased to 2.9% in July 2026, down from 3.0% in June. According to final national data released on Aug. 12, consumer prices increased by 0.3% compared to June. Initially, at the end of July, preliminary data indicated an annual rate of 2.8%. The final figure thus surpassed the early estimate by 0.1 percentage point. July represented the second consecutive month of declining annual inflation, after reaching 3.2% in May.
Istat attributed the slowdown to weaker growth in non-regulated energy prices, unprocessed food, and various services. Non-regulated energy inflation decreased to 11.4% from 13.3%. Inflation for unprocessed food dropped to 3.6% from 4.4%. Inflation in miscellaneous services declined to 1.8% from 2.5%. These decreases balanced out stronger inflation rates in regulated energy and several service sectors.
Prices for regulated energy surged 14.8% year over year, up from 9.2% in June. Transport-related services increased by 1.6%, compared to 1.1%. Recreation, repair, and personal care services rose by 3.0%, up from 2.7% in June. Goods inflation decreased slightly to 3.2% from 3.3%, whereas services inflation rose to 2.7% from 2.6%. Core inflation, which excludes energy and unprocessed food, remained steady at 1.6% for a second consecutive month.
Energy and food prices drive July inflation shifts
Monthly movements across categories showed a similar pattern. Regulated energy prices increased by 6.5% from June, while transport services went up by 1.4%. Recreation, repair, and personal care services grew by 0.6%, and non-regulated energy costs rose by 0.5%. Processed food, including alcohol and housing-related services, each saw a 0.3% rise. Meanwhile, unprocessed food prices fell 1.3% from June. This pattern resulted in the national index being 0.3% higher than in June.
Looking at broader spending categories, costs for housing, water, electricity, gas, and other fuels increased by 7.2% from July 2025. Transport prices rose by 4.3%, and expenses for restaurants and accommodation services grew by 3.4%. Food and non-alcoholic beverages went up by 1.4%, while clothing and footwear increased by 0.9%. The index excluding energy rose 1.8% year over year, slightly down from 1.9% in June. The grocery and unprocessed food segment increased by 1.0%, easing from 1.3% in the previous month.
Euro area rate aligns with Italy’s harmonised measure
Italy’s harmonised consumer price index grew by 2.9% in July, matching the June rate. The harmonised measure fell by 1.0% from June, primarily due to summer sales that influence it but do not impact the national index. This final reading confirmed the earlier preliminary harmonised estimate. Eurostat reported euro area inflation at 2.9% in its July flash estimate, up from 2.8% in June. Italy’s harmonised annual inflation rate therefore aligned with the preliminary rate for the currency bloc.
The overall national index reached 103.4 in July, using 2025 as the base year set at 100. July data reflected a combination of slower annual growth in several categories with quicker increases elsewhere. While non-regulated energy, unprocessed food, and miscellaneous services experienced deceleration, regulated energy and transport services saw acceleration. Both the national and harmonised indices recorded an annual inflation of 2.9%. Their monthly figures diverged due to seasonal sales affecting the harmonised index but not the national measure.