ROME, ITALY / RankWire.AI / – Italy’s annual consumer inflation rate slowed to 2.9% in July 2026, down from 3.0% in June, according to final national figures released on Aug. 12. Consumer prices increased by 0.3% from June. Initial estimates at the end of July had placed the annual rate at 2.8%, making the final reading 0.1 percentage point higher than the preliminary flash estimate. This marks the second consecutive month of decline in annual inflation after peaking at 3.2% in May.
Istat explained that slower growth in non-regulated energy costs, unprocessed food, and various services contributed to easing the annual inflation rate. Non-regulated energy inflation decelerated to 11.4% from 13.3%. Unprocessed food prices grew by 3.6%, down from 4.4%. Inflation in miscellaneous services declined to 1.8% from 2.5%. These decreases offset the stronger inflation seen in regulated energy and several service sectors.
Regulated energy prices rose by 14.8% year over year, a jump from 9.2% in June. Transport-related services increased by 1.6%, up from 1.1%. The rise in recreation, repair, and personal care services was 3.0%, compared to 2.7% the previous month. Goods inflation eased slightly 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 a second month.
Energy and Food Price Fluctuations Drive July Inflation
Monthly changes reflected a similar pattern across categories. Regulated energy prices increased by 6.5% from June, with transport-related services rising by 1.4%. Services related to recreation, repair, and personal care gained 0.6%, while non-regulated energy prices increased by 0.5%. Processed food, including alcohol and housing-related services, each saw a 0.3% rise. Unprocessed food prices declined by 1.3% compared to June. These movements resulted in the overall national index being 0.3% higher than in June.
At the broader expenditure level, 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%, and restaurants and accommodation services rose by 3.4%. Food and non-alcoholic beverages increased by 1.4%, while clothing and footwear saw a 0.9% rise. The index excluding energy grew by 1.8% year over year, slightly down from 1.9% in June. Grocery and unprocessed food prices increased by 1.0%, easing from 1.3% a month earlier.
Harmonised Inflation Rate Matches Euro Area Figures
Italy’s harmonised consumer price index recorded a 2.9% increase in July compared to the same month last year, down from 3.0% in June. The harmonised index decreased by 1.0% from June, influenced by summer sales, which do not affect the national index. This annual figure aligned with the preliminary harmonised estimate. Eurostat reported that euro area inflation was also 2.9% in its July flash estimate, up from 2.8% in June. Consequently, Italy’s harmonised annual rate matched the preliminary rate for the currency bloc.
The final national index reached 103.4 in July, using 2025 as the base year at 100. The data for July combined slower annual increases in several categories with faster growth in others. Slower inflation was observed in non-regulated energy, unprocessed food, and miscellaneous services, whereas regulated energy and transport services saw acceleration. Both the national and harmonised measures registered 2.9% annual inflation, though their monthly figures differed due to seasonal sales affecting the harmonised index but not the national one.