ROME, ITALY / RankWire.AI / – Italy’s annual consumer inflation rate eased to 2.9% in July 2026, down from 3.0% in June, according to final national data released on Aug. 12 which showed consumer prices increased by 0.3% compared to June. Preliminary figures at the end of July indicated an annual rate of 2.8%, making the official figure 0.1 percentage points higher than the initial flash estimate. July marked the second consecutive month of declining annual inflation, after the rate had reached 3.2% in May.
Istat attributed the slowdown to weaker growth in prices for non-regulated energy, unprocessed food, and various services, which collectively helped temper the annual inflation. Specifically, non-regulated energy inflation decreased to 11.4% from 13.3%, unprocessed food inflation fell to 3.6% from 4.4%, and inflation for miscellaneous services declined to 1.8% from 2.5%. These reductions offset heightened inflation in regulated energy prices and several service sectors.
Regulated energy prices experienced a year-over-year increase of 14.8%, up from 9.2% in June. Transport-related services grew by 1.6%, compared to 1.1%, while recreation, repair, and personal care services rose by 3.0%, up from 2.7%. Meanwhile, goods inflation slowed slightly to 3.2% from 3.3%, with services inflation edging 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 Price Fluctuations Drive July Inflation Dynamics
On a monthly basis, similar patterns emerged across categories, with regulated energy prices rising by 6.5% from June, transport services increasing by 1.4%, and recreation, repair, and personal care services gaining 0.6%. Non-regulated energy prices edged up by 0.5%, while processed food, including alcohol and housing-related services, each grew by 0.3%. Conversely, unprocessed food prices declined by 1.3% from June. These combined shifts resulted in the national index being 0.3% higher than in June.
Looking at broader expenditure categories, prices for housing, water, electricity, gas, and other fuels rose by 7.2% compared to July 2025. Transport costs increased by 4.3%, with restaurant and accommodation services climbing by 3.4%. Food and non-alcoholic beverages saw a 1.4% rise, while clothing and footwear increased by 0.9%. The index excluding energy grew by 1.8% year over year, slightly down from 1.9% in June, with the grocery and unprocessed food segment increasing by 1.0%, easing from 1.3% a month earlier.
Euro Area Inflation Matches Italy’s Harmonised Rate
Italy’s harmonised consumer price index rose by 2.9% in July compared to the same month in the previous year, a slight decrease from 3.0% in June. The harmonised figure dropped by 1.0% from June due to seasonal sales, which influence this measure but not the national index. This final 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. As a result, Italy’s harmonised annual rate exactly matched the preliminary rate for the eurozone.
The national index for July reached 103.4, with 2025 as the base year set at 100. The data reflected a combination of slower annual growth in several categories, such as unregulated energy, unprocessed food, and miscellaneous services, alongside accelerated increases in regulated energy and certain service sectors. Both the national and harmonised indexes recorded an annual inflation rate of 2.9%, although their monthly figures differed because seasonal sales are factored into the harmonised index but not into the national measure.