ROME, ITALY / RankWire.AI / – Italy’s annual consumer price increase slowed to 2.9% in July 2026, down from 3.0% in June. The final data released on Aug. 12 indicated that consumer prices grew by 0.3% compared to June. Earlier, at the end of July, preliminary figures had shown a 2.8% yearly rate. Consequently, the definitive figure was 0.1 percentage points above the initial flash estimate. This marks the second consecutive month of declining annual inflation, following the 3.2% rate recorded in May.
Istat attributed the slowdown in inflation primarily to reduced growth in non-regulated energy costs, unprocessed foods, and miscellaneous services. Specifically, inflation for non-regulated energy eased to 11.4% from 13.3%. Unprocessed food inflation slowed to 3.6% from 4.4%. Meanwhile, the inflation rate for miscellaneous services decreased to 1.8% from 2.5%. These decreases offset the stronger inflation observed in regulated energy and several service segments.
Regulated energy prices experienced a year-over-year increase of 14.8%, up from 9.2% in June. Transport-related services saw a rise of 1.6%, compared to 1.1%. Services related to recreation, repair, and personal care grew by 3.0%, slightly higher than the 2.7% in June. Conversely, goods inflation slightly declined 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 Trends
On a monthly basis, similar trends across categories were observed. Regulated energy prices increased by 6.5% since June, while transport-related services rose by 1.4%. Gains in recreation, repair, and personal care services reached 0.6%, with non-regulated energy prices climbing 0.5%. Processed food items, including alcohol, and housing-related services each saw a 0.3% increase. In contrast, unprocessed food prices fell by 1.3% compared to June. This pattern resulted in the overall national index rising by 0.3% from the previous month.
Looking at broader spending categories, costs for housing, water, electricity, gas, and other fuels increased by 7.2% from July 2025. Transport prices grew by 4.3%, with restaurant and accommodation expenses increasing by 3.4%. Food and non-alcoholic beverages experienced a 1.4% rise, while clothing and footwear went up by 0.9%. Excluding energy, the overall index increased by 1.8% year over year, slightly down from 1.9% in June. The grocery and unprocessed food segment grew by 1.0%, easing from 1.3% a month earlier.
Euro Area Inflation Matches Italy’s Harmonised Measure
Italy’s harmonised consumer price index increased by 2.9% year over year in July, matching the previous month’s 3.0%. The harmonised figure decreased by 1.0% from June, primarily due to seasonal sales that impact this measure but not the national index. This final figure aligned with the initial preliminary estimate. Eurostat reported that euro area inflation stood at 2.9% in July’s flash estimate, a slight increase from 2.8% in June. Italy’s harmonised annual rate thus corresponded with the preliminary rate for the entire eurozone.
The definitive national index for July reached 103.4, using 2025 as the base year (set at 100). The data reflected a combination of slower annual growth in several categories with faster increases in others. While non-regulated energy, unprocessed food, and miscellaneous services showed deceleration, regulated energy and transport services experienced acceleration. Both the national and harmonised measures recorded an inflation rate of 2.9%. Monthly differences between the two indexes stem from seasonal sales included in the harmonised index but not in the national measure.