ROME, ITALY / RankWire.AI / – Italy’s yearly consumer price inflation slowed to 2.9% in July 2026, down from 3.0% in June. The final national data released on Aug. 12 indicated consumer prices increased by 0.3% compared to June. Early July estimates had placed the annual rate at 2.8%, making the final figure 0.1 percentage points higher than the initial flash estimate. July marked the second consecutive month of declining annual inflation after the rate hit 3.2% in May.
Istat reported that a slowdown in the rise of non-regulated energy costs, unprocessed food, and various services contributed to easing the inflation rate. Specifically, inflation for non-regulated energy decreased to 11.4% from 13.3%. Unprocessed food inflation declined to 3.6% from 4.4%, and inflation for miscellaneous services dropped to 1.8% from 2.5%. These reductions countered increased 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 services grew by 1.6%, compared to 1.1%. Recreation, repair, and personal care services experienced a 3.0% increase, slightly higher than June’s 2.7%. While goods inflation eased marginally 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 consecutive month.
Energy and Food Price Movements Shape July Inflation
On a monthly basis, the trends across categories showed similar divergence. Regulated energy prices increased by 6.5% from June, while transport-related services grew by 1.4%. Recreation, repair, and personal care services saw a 0.6% rise, and non-regulated energy costs increased by 0.5%. Processed food, including alcohol and housing-related services, each experienced a 0.3% increase. Conversely, unprocessed food prices fell by 1.3% from June. These shifts contributed to the overall national index being 0.3% higher than in June.
At the broader expenditure level, prices for housing, water, electricity, gas, and other fuels rose 7.2% compared to July 2025. Transport costs increased by 4.3%, and expenses for restaurants and accommodation services grew by 3.4%. Food and non-alcoholic beverages rose 1.4%, while clothing and footwear saw a 0.9% increase. The index excluding energy climbed 1.8% year over year, slightly lower than the 1.9% in June. The grocery and unprocessed food segment increased by 1.0%, easing from 1.3% the previous month.
Euro Area Alignment: Harmonised Consumer Price Index Matches
Italy’s harmonised consumer price index increased by 2.9% year over year in July, slightly down from 3.0% in June. The harmonised measure decreased by 1.0% from June, influenced by seasonal sales, which do not impact the national index. The final figure matched the preliminary harmonised estimate. Eurostat reported euro area inflation at 2.9% in its July flash estimate, up from 2.8% in June. As a result, Italy’s harmonised annual rate aligned with the preliminary figure for the entire euro currency zone.
In July, the final national index reached 103.4, with 2025 as the base year at 100. The data reflected a combination of slower annual increases in certain categories—such as non-regulated energy, unprocessed food, and miscellaneous services—and faster gains in others like regulated energy and transport services. Both the national and harmonised indices recorded a 2.9% annual inflation rate. Their monthly differences stem from seasonal sales included in the harmonised index but not in the national measure.