ROME, ITALY / RankWire.AI / – Italy’s annual consumer inflation rate decreased to 2.9% in July 2026 from 3.0% in June. Final national data published on Aug. 12 indicated that consumer prices increased by 0.3% compared to June. Initially, at the end of July, preliminary data had shown an annual rate of 2.8%. The confirmed figure, therefore, was 0.1 percentage points higher than the initial estimate. July marked the second consecutive month of declining inflation, after the rate reached 3.2% in May.
Istat attributed the slowdown to weaker growth in non-regulated energy costs, unprocessed foods, and miscellaneous services. Non-regulated energy inflation decreased to 11.4% from 13.3%. The inflation for unprocessed foods eased to 3.6% from 4.4%. Meanwhile, inflation in miscellaneous services fell to 1.8% from 2.5%. These reductions offset the increased inflation seen in regulated energy prices and various service sectors.
Regulated energy prices climbed 14.8% year over year, up from 9.2% in June. Transport-related services saw a 1.6% rise, compared to 1.1%. Recreation, repair, and personal care services grew by 3.0%, slightly higher than the 2.7% increase in June. Goods inflation slowed slightly to 3.2% from 3.3%, while services inflation edged 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 Prices Drive July Inflation Changes
Monthly fluctuations reflected a similar pattern across different categories. Regulated energy costs rose by 6.5% from June, while transport services increased by 1.4%. The sectors of recreation, repair, and personal care services increased by 0.6%, and non-regulated energy prices grew by 0.5%. Processed foods, including alcohol and housing-related services, each saw a 0.3% rise. Conversely, unprocessed food prices declined by 1.3% from June. These shifts contributed to the overall national index rising by 0.3% from the previous month.
On the broader expenditure front, categories such as housing, water, electricity, gas, and other fuels experienced a 7.2% increase compared to July 2025. Transport prices went up by 4.3%, while restaurants and accommodation services rose by 3.4%. Food and non-alcoholic beverages increased by 1.4%, and clothing along with footwear gained 0.9%. The index excluding energy experienced a 1.8% rise year over year, slightly down from 1.9% in June. The grocery and unprocessed food segment increased by 1.0%, easing from 1.3% in the previous month.
European Harmonised Index Shows Parallel Trends
Italy’s harmonised consumer price index grew by 2.9% year over year in July, matching June’s rate of 3.0%. The harmonised measure declined by 1.0% from June, influenced by seasonal sales which are not reflected in the national index. This annual figure aligned with 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 annual inflation rate was consistent with the preliminary data for the eurozone.
The final national index reached 103.4 in July, with 2025 used as the base year at 100. The data reflected a combination of slower annual gains in some categories, such as non-regulated energy, unprocessed foods, and miscellaneous services, alongside faster increases in others like regulated energy and transport services. Both the national and harmonised measures recorded an inflation rate of 2.9% annually. Their monthly figures differed because seasonal sales influence the harmonised index but not the national measurement.