ROME, ITALY / RankWire.AI / – In July 2026, Italy experienced a slowdown in its annual consumer inflation rate, which declined to 2.9% from the previous month’s 3.0%. According to final national data released on Aug. 12, consumer prices increased by 0.3% compared to June. Earlier, at the end of July, preliminary figures had indicated an annual rate of 2.8%. The conclusive figure thus exceeded the initial flash estimate by 0.1 percentage points. This month saw the second consecutive drop in annual inflation, after it peaked at 3.2% in May.
Istat attributed the easing primarily to slower price increases in non-regulated energy, unprocessed foods, and various services. Non-regulated energy inflation slowed down to 11.4% from 13.3%. The inflation rate for unprocessed foods decreased to 3.6% from 4.4%. Additionally, inflation for miscellaneous services fell to 1.8% from 2.5%. These declines offset the sharper increases seen in regulated energy costs and several service sectors.
Prices for regulated energy surged 14.8% year over year, up from 9.2% in June. Transport-related services grew by 1.6%, compared to 1.1%. Recreation, repair, and personal care services increased 3.0%, slightly higher than the 2.7% in June. Goods inflation eased marginally to 3.2% from 3.3%, while services inflation edged up to 2.7% from 2.6%. Excluding energy and unprocessed food, core inflation remained steady at 1.6% for the second month in a row.
Energy and Food Prices Drive July Inflation Dynamics
Monthly fluctuations reflected similar patterns across categories. Regulated energy prices increased by 6.5% from June, while transport services grew by 1.4%. Recreation, repair, and personal care services saw a 0.6% rise, and non-regulated energy costs went up by 0.5%. Processed foods, including alcohol and housing-related services, each climbed by 0.3%. Conversely, unprocessed food prices declined by 1.3% from June. Overall, these shifts contributed to the national index being 0.3% higher than in June.
At a broader level of expenditure, prices for housing, water, electricity, gas, and other fuels increased 7.2% from July 2025. Transport costs rose 4.3%, and expenses for restaurants and accommodation services grew by 3.4%. Food and non-alcoholic beverages saw a 1.4% increase, while clothing and footwear advanced by 0.9%. The index excluding energy rose by 1.8% annually, slightly down from 1.9% in June. The grocery and unprocessed food segment increased 1.0%, easing from 1.3% the previous month.
The Harmonised Indicator Aligns with Euro Area Inflation Rate
Italy’s harmonised consumer price index recorded a 2.9% year-over-year rise in July, a decrease from 3.0% in June. The harmonised measure dropped by 1.0% from June, influenced by seasonal sales which do not affect the national index. This annual 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. Consequently, Italy’s harmonised inflation rate aligned with the preliminary rate observed across the euro zone.
The national index concluded July at 103.4, using 2025 as the base year (set at 100). The data illustrated a combination of slower growth in several categories, such as non-regulated energy, unprocessed food, and miscellaneous services, alongside faster increases in regulated energy and transport services. Both the national and harmonised indices recorded 2.9% annual inflation. Their monthly differences arise because the harmonised measure includes seasonal sales, which are not factored into the national index.