ROME, ITALY / RankWire.AI / – Italy’s annual consumer inflation slowed to 2.9% in July 2026, down from 3.0% in June. The final national data released on Aug. 12 showed consumer prices increased by 0.3% from June. Earlier, at the end of July, preliminary data indicated an annual rate of 2.8%. The confirmed figure was therefore 0.1 percentage points higher than the initial flash estimate. July marked the second consecutive month of declining inflation after reaching 3.2% in May.
Istat reported that slower price increases in non-regulated energy, unprocessed food, and miscellaneous services contributed to cooling the annual rate. Non-regulated energy inflation slowed to 11.4% from 13.3%. Inflation for unprocessed food eased to 3.6% from 4.4%. Inflation in miscellaneous services fell to 1.8% from 2.5%. These decreases offset higher inflation in regulated energy and several service sectors.
Prices for regulated energy rose 14.8% year over year, up from 9.2% in June. Transport-related services increased by 1.6%, compared to 1.1%. Recreation, repair, and personal care services increased 3.0%, from 2.7%. Goods inflation eased slightly to 3.2% from 3.3%, while services inflation rose to 2.7% from 2.6%. Core inflation, excluding energy and unprocessed food, remained steady at 1.6% for a second month.
Energy and food price shifts influence July’s inflation
Monthly changes revealed similar category trends. Regulated energy prices increased 6.5% from June, while transport services grew by 1.4%. Recreation, repair, and personal care services gained 0.6%, with non-regulated energy prices rising 0.5%. Processed food, including alcohol and housing-related services, each went up 0.3%. Meanwhile, unprocessed food prices dropped 1.3% from June. Overall, this pattern pushed the national index 0.3% higher than in June.
In broader spending categories, costs for housing, water, electricity, gas, and fuels rose 7.2% from July 2025. Transport prices increased 4.3%, and restaurant and accommodation expenses went up 3.4%. Food and non-alcoholic drinks rose 1.4%, while clothing and footwear increased 0.9%. The index excluding energy rose 1.8% year over year, slightly down from 1.9% in June. Grocery and unprocessed food prices increased 1.0%, easing from 1.3% the previous month.
Euro area inflation aligns with Italy’s harmonised rate
Italy’s harmonised consumer price index increased 2.9% year over year in July, down from 3.0% in June. The harmonised index fell 1.0% from June due to seasonal sales, which do not affect the national index. This annual figure matched the initial harmonised estimate. Eurostat reported euro area inflation at 2.9% in its July flash estimate, up from 2.8% in June. Italy’s harmonised annual rate therefore matched the preliminary rate for the eurozone.
The final national index reached 103.4 in July, with 2025 as the base year at 100. The data showed slower annual gains in some categories but faster in others. Non-regulated energy, unprocessed food, and miscellaneous services slowed, while regulated energy and transport services picked up. Both national and harmonised measures recorded 2.9% annual inflation. Their monthly figures differed because seasonal sales are included in the harmonised index but not in the national measure.