ROME, ITALY / RankWire.AI / – In July 2026, Italy’s yearly inflation rate for consumers eased slightly to 2.9% from 3.0% in June. According to final national data released on Aug. 12, consumer prices increased by 0.3% compared to June. Initial estimates at the end of July indicated a 2.8% annual rate, making the official figure 0.1 percentage points higher than the preliminary flash estimate. This marks the second consecutive month of declining annual inflation, after hitting 3.2% in May.
Istat reported that slower inflation in non-regulated energy prices, unprocessed foods, and a variety of services contributed to the cooling trend. Specifically, inflation for non-regulated energy decelerated to 11.4% from 13.3%, while unprocessed food inflation eased to 3.6% from 4.4%. Additionally, inflation in miscellaneous services declined to 1.8% from 2.5%. These decreases balanced out the stronger inflation seen in regulated energy and several service sectors.
Regulated energy costs saw a year-over-year increase of 14.8%, up from 9.2% in June. Transport-related services experienced a rise of 1.6%, compared to 1.1%. Recreation, repair, and personal care services grew by 3.0%, slightly higher than June’s 2.7%. Meanwhile, goods inflation slowed marginally to 3.2% from 3.3%, whereas services inflation edged up to 2.7% from 2.6%. The core inflation rate, which excludes energy and unprocessed food, remained steady at 1.6% for a second month in a row.
Energy and Food Prices Drive July Inflation Dynamics
Monthly data showed similar patterns across categories. Prices for regulated energy increased by 6.5% from June, while transport services grew by 1.4%. The sectors of recreation, repair, and personal care services experienced a 0.6% rise, with non-regulated energy prices climbing by 0.5%. Processed foods, including alcohol and housing services, each gained 0.3%. Conversely, unprocessed food prices declined by 1.3% compared to June. This pattern resulted in the overall national index being 0.3% higher than in the previous month.
Looking at broader expenditure categories, costs for housing, water, electricity, gas, and other fuels increased by 7.2% from July 2025. Transport prices rose by 4.3%, with restaurant and accommodation services increasing by 3.4%. Food and non-alcoholic beverages saw a 1.4% rise, while clothing and footwear prices grew by 0.9%. The index excluding energy registered a 1.8% year-over-year rise, slightly below June’s 1.9%. The grocery and unprocessed food segment increased by 1.0%, easing from 1.3% in the previous month.
Euro Area Inflation Matches Italy’s Harmonised Rate at 2.9%
Italy’s harmonised consumer price index (CPI) rose by 2.9% in July compared to the previous year, down from 3.0% in June. The harmonised measure decreased by 1.0% from June, primarily due to seasonal sales that influence this index but are not reflected in the national figure. This final reading aligned with the early estimate. Eurostat reported that euro area inflation reached 2.9% in its July flash estimate, up from 2.8% in June. Consequently, Italy’s harmonised annual rate was consistent with the preliminary rate for the entire euro zone.
The national index for July reached 103.4, using 2025 as the base year at 100. The data revealed a combination of slower annual growth in several categories, such as non-regulated energy, unprocessed food, and miscellaneous services, alongside faster increases in regulated energy and certain transport services. Both the national and harmonised indices recorded an annual inflation rate of 2.9%. Their monthly figures differ because seasonal sales are factored into the harmonised index but not into the national measure.