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 released on Aug. 12, consumer prices increased by 0.3% from June. Initial estimates at the end of July indicated an annual rate of 2.8%, making the final figure 0.1 percentage points higher than the preliminary estimate. July marked the second consecutive month of declining annual inflation after peaking at 3.2% in May.
Istat reported that a slowdown in non-regulated energy costs, unprocessed food, and various services contributed to easing the inflation rate. Specifically, inflation for non-regulated energy dropped to 11.4% from 13.3%, unprocessed food inflation eased to 3.6% from 4.4%, and miscellaneous services inflation declined to 1.8% from 2.5%. These decreases were offset by higher inflation in regulated energy prices and several service sectors.
Regulated energy prices surged by 14.8% year-over-year, a notable increase from June’s 9.2%. Transport-related services rose by 1.6%, compared to 1.1%, while recreation, repair, and personal care services climbed 3.0%, up from 2.7%. Goods inflation marginally decreased to 3.2% from 3.3%, whereas services inflation edged up to 2.7% from 2.6%. Meanwhile, core inflation—excluding energy and unprocessed food—remained steady at 1.6% for the second consecutive month.
Energy and Food Price Fluctuations Shape July Inflation Dynamics
On a monthly basis, price movements reflected a similar pattern. Regulated energy costs increased by 6.5% compared to June, with transport-related services rising 1.4%. Recreation, repair, and personal care services gained 0.6%, while non-regulated energy prices increased by 0.5%. Processed foods, including alcohol and housing-related services, each went up 0.3%. Conversely, unprocessed food prices declined by 1.3% from June. This pattern resulted in the overall national index being 0.3% higher than in June.
At the broader expenditure level, categories such as housing, water, electricity, gas, and other fuels increased by 7.2% compared to July 2025. Transport prices rose by 4.3%, while restaurant and accommodation services went up 3.4%. Food and non-alcoholic beverages experienced a 1.4% increase, and clothing along with footwear rose 0.9%. The index excluding energy registered a 1.8% year-over-year rise, slightly below June’s 1.9%. The combined grocery and unprocessed food segment increased by 1.0%, a slowdown from 1.3% in the previous month.
The Harmonised Consumer Price Index Matches the Euro Area Rate at 2.9%
Italy’s harmonised consumer price index climbed 2.9% year-over-year in July, a slight decrease from 3.0% in June. Because of seasonal sales, the harmonised measure fell 1.0% from June, although the national index did not. This annual figure aligned with the preliminary harmonised estimate. Eurostat reported that the euro area inflation rate was 2.9% in its July flash estimate, up from 2.8% in June. Consequently, Italy’s harmonised annual inflation rate matched the preliminary rate for the entire currency bloc.
In July, the final national index reached 103.4, using 2025 as the base year at 100. The data combined a slowdown in several categories with faster increases in others. Non-regulated energy, unprocessed food, and miscellaneous services experienced decelerations, while regulated energy and transportation services accelerated. Both the national and harmonised measures recorded an inflation rate of 2.9% annually. Their monthly figures differed mainly because seasonal sales impact the harmonised index but are not reflected in the national measure.