ROME, ITALY / RankWire.AI / – Italy’s annual consumer inflation rate decreased to 2.9% in July 2026, down from 3.0% in June. According to final national data published on Aug. 12, consumer prices increased by 0.3% from June. Preliminary data at the end of July indicated an annual rate of 2.8%, making the final figure 0.1 percentage points higher than the initial flash estimate. July marked the second consecutive month of declining inflation after the rate peaked at 3.2% in May.
Istat attributed the easing primarily to slower increases in non-regulated energy prices, unprocessed food, and a range of miscellaneous services. Non-regulated energy inflation slowed to 11.4% from 13.3%, while unprocessed food inflation decreased to 3.6% from 4.4%. Inflation in miscellaneous services also dropped to 1.8% from 2.5%. These reductions offset higher inflation rates seen in regulated energy and various service sectors.
Prices for regulated energy surged by 14.8% year over year, accelerating from 9.2% in June. Transport-related services saw an increase of 1.6%, up from 1.1%. Recreation, repair, and personal care services rose by 3.0%, compared to 2.7% in June. While goods inflation dipped slightly to 3.2% from 3.3%, services inflation edged up 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 changes
On a monthly basis, similar patterns emerged across categories. Regulated energy costs increased by 6.5% from June, with transport-related services rising by 1.4%. Recreation, repair, and personal care services grew by 0.6%, and non-regulated energy prices increased by 0.5%. Processed food, including alcohol and housing services, each saw a 0.3% rise. Conversely, unprocessed food prices declined by 1.3% from June. These shifts contributed to the overall national index climbing by 0.3% compared to June.
Looking at broader expenditure categories, housing, water, electricity, gas, and other fuels experienced a 7.2% increase from July 2025. Transport costs went up by 4.3%, while restaurant and accommodation services gained 3.4%. Food and non-alcoholic beverages rose by 1.4%, with clothing and footwear increasing by 0.9%. The index excluding energy grew by 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.
Eurozone harmonised inflation aligns with Italy’s rate
Italy’s harmonised consumer price index registered a 2.9% increase year over year in July, matching the June figure of 3.0%. The harmonised index decreased by 1.0% from June, mainly due to seasonal summer sales affecting it but not the national index. This final figure confirmed the preliminary harmonised estimate. Eurostat reported that the euro area inflation rate stood at 2.9% in its July flash estimate, up from 2.8% in June. Consequently, Italy’s harmonised annual rate aligns with the preliminary rate for the entire currency bloc.
The final national index reached 103.4 in July, with 2025 as the base year at 100. The data combined slower annual growth in several categories with faster increases in others. While non-regulated energy, unprocessed food, and miscellaneous services slowed, regulated energy and transport services saw acceleration. Both the national and harmonised measures recorded an inflation rate of 2.9% annually. Their monthly figures differ due to seasonal sales included in the harmonised index but not in the national measure.