ROME, ITALY / RankWire.AI / – Italy’s yearly consumer inflation rate eased to 2.9% in July 2026 from 3.0% in June. According to the final national data released on Aug. 12, consumer prices increased by 0.3% compared to June. Early estimates at the end of July indicated an annual rate of 2.8%, making the final figure 0.1 percentage point higher than the initial flash estimate. July represented the second consecutive month of declining annual inflation, after hitting 3.2% in May.
Istat attributed the slowdown to weaker growth in non-regulated energy costs, unprocessed food, and various services, which contributed to lowering the annual inflation rate. Specifically, inflation for non-regulated energy dropped to 11.4% from 13.3%. Meanwhile, unprocessed food inflation decreased to 3.6% from 4.4%, and inflation for miscellaneous services declined to 1.8% from 2.5%. These reductions counterbalanced the faster inflation seen in regulated energy and several service sectors.
Prices for regulated energy increased by 14.8% year over year, up from 9.2% in June. Transport-related services grew by 1.6%, compared to 1.1%. Additionally, recreation, repair, and personal care services rose by 3.0%, from 2.7% in June. Meanwhile, goods inflation eased slightly to 3.2% from 3.3%, with services inflation edging 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 Price Dynamics Shape July Inflation Trends
On a monthly basis, categories experienced similar divergent movements. Regulated energy prices increased by 6.5% from June, whereas transport-related services saw a 1.4% rise. Recreation, repair, and personal care services gained 0.6%, with non-regulated energy prices climbing by 0.5%. Processed food items, including alcohol and housing services, each rose by 0.3%. Conversely, unprocessed food prices fell by 1.3% from the previous month. These shifts resulted in the overall national index being 0.3% higher than in June.
At broader expenditure levels, prices for housing, water, electricity, gas, and other fuels increased by 7.2% compared to July 2025. Transport costs rose by 4.3%, while restaurant and accommodation services grew by 3.4%. Food and non-alcoholic beverages saw a 1.4% increase, and clothing along with footwear advanced by 0.9%. Excluding energy, the index rose by 1.8% year over year, slightly lower than the 1.9% recorded in June. The grocery and unprocessed food segment rose by 1.0%, easing from 1.3% the previous month.
Euro Area Inflation Aligns with Italy’s Harmonised Measure at 2.9%
Italy’s harmonised consumer price index increased by 2.9% in July compared to the previous year, down from 3.0% in June. The harmonised index declined by 1.0% from June, reflecting seasonal sales that influence this measure but not the national index. This final figure matched the initial harmonised estimate. Eurostat reported the euro area inflation rate at 2.9% in its July preliminary estimate, up from 2.8% in June. Consequently, Italy’s harmonised annual inflation rate was consistent with the preliminary rate for the currency bloc.
The complete national index reached 103.4 in July, with 2025 serving as the base year at 100. The data reflect a combination of slower annual increases in certain categories and faster rises in others. Declines in non-regulated energy, unprocessed food, and miscellaneous services contrasted with accelerated inflation in regulated energy and transport services. Both the national and harmonised indices reported an annual inflation rate of 2.9%. Their monthly figures diverged due to seasonal sales affecting the harmonised index but not the national measure.