ROME, ITALY / RankWire.AI / – The annual rate of consumer inflation in Italy decreased to 2.9% in July 2026 from 3.0% in June, according to final national data released on Aug. 12, which indicated a 0.3% increase in consumer prices from June. Initial estimates at the end of July had suggested a rate of 2.8%, making the official figure 0.1 percentage point higher than the preliminary estimate. This marks the second consecutive month of declining inflation, after the rate hit 3.2% in May.
Istat explained that a slowdown in the rise of non-regulated energy prices, unprocessed food, and miscellaneous services contributed to easing the annual inflation rate. Specifically, inflation for non-regulated energy slowed to 11.4% from 13.3%, unprocessed food inflation declined to 3.6% from 4.4%, and inflation in miscellaneous services dropped to 1.8% from 2.5%. These decreases offset higher inflation 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 experienced a 1.6% increase, compared to 1.1% previously. Recreation, repair, and personal care services rose 3.0%, an increase from 2.7% in June. While goods inflation slowed 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 the second month in a row.
Energy and Food Price Movements Drive July Inflation
On a monthly basis, a similar pattern emerged across categories. Regulated energy prices increased by 6.5% from June, while transport-related services grew by 1.4%. The sectors of recreation, repair, and personal care services rose by 0.6%, and non-regulated energy prices increased by 0.5%. Processed food, including alcohol and housing-related services, each saw a 0.3% rise. 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 category level, housing, water, electricity, gas, and other fuels saw a 7.2% increase from July 2025. Transport prices rose by 4.3%, with restaurant and accommodation services increasing by 3.4%. Food and non-alcoholic beverages were up 1.4%, and clothing and footwear rose 0.9%. The index excluding energy grew by 1.8% year-over-year, a slight decrease from 1.9% in June. The grocery and unprocessed food category increased by 1.0%, down from 1.3% a month earlier.
Euro Area Inflation Matches Italy’s Harmonised Rate
Italy’s harmonised consumer price index rose 2.9% year-over-year in July, down from 3.0% in June. The harmonised measure declined by 1.0% from June, influenced by seasonal sales that do not impact the national index. This annual figure aligned with the preliminary harmonised estimate. Eurostat reported that euro area inflation stood at 2.9% in its July flash estimate, an increase from 2.8% in June. Italy’s harmonised annual rate thus matched the preliminary rate for the entire currency bloc.
The final national index reached 103.4 in July, with 2025 serving as the base year at 100. The data for July reflect a combination of slower annual growth in several categories, such as unregulated energy, unprocessed food, and miscellaneous services, alongside faster increases in others like regulated energy and transport services. Both the national and harmonised measures recorded an annual inflation of 2.9%, though their monthly figures differ due to seasonal sales factored into the harmonised index but not the national one.