ROME, ITALY / RankWire.AI / – In the broader context of ongoing inflation trends across the euro area, Italy experienced a modest easing in its annual consumer price increase, with July 2026 registering a rate of 2.9%, down from 3.0% in June. Official figures released on Aug. 12 indicate that consumer prices rose by 0.3% compared to June. Initial estimates at the end of July had suggested an annual rate of 2.8%, making the final figure 0.1 percentage points higher than the preliminary flash estimate. This marks the second consecutive month of declining inflation after it peaked at 3.2% in May.
Istat attributed the slowdown to softer growth in prices for non-regulated energy, unprocessed food, and various services, which collectively contributed to cooling the annual rate. Specifically, inflation for non-regulated energy slowed to 11.4% from 13.3%, while unprocessed food inflation decreased to 3.6% from 4.4%. Meanwhile, inflation for miscellaneous services fell to 1.8% from 2.5%. These decreases offset increased inflation in regulated energy and several service sectors.
Prices for regulated energy climbed 14.8% year-over-year, a rise from 9.2% in June. Transport-related services grew by 1.6%, up from 1.1%, and recreation, repair, and personal care services increased by 3.0%, compared to 2.7% in June. Goods inflation eased slightly to 3.2% from 3.3%, whereas services inflation increased marginally to 2.7% from 2.6%. Core inflation—excluding energy and unprocessed food—remained steady at 1.6% for a second consecutive month.
Energy and Food Prices Drive July Inflation Trends
Monthly fluctuations reflect a similar pattern across categories. Regulated energy prices increased by 6.5% compared to June, while transport services grew by 1.4%. The sectors of recreation, repair, and personal care services rose by 0.6%, and non-regulated energy prices gained 0.5%. Processed food, including alcohol and housing-related services, each saw a 0.3% rise. Conversely, unprocessed food prices declined by 1.3% from June. These shifts contributed to the overall national index being 0.3% higher than in June.
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%, and restaurants and accommodation services rose by 3.4%. Food and non-alcoholic beverages saw a 1.4% increase, while clothing and footwear went up by 0.9%. The index excluding energy rose 1.8% year-over-year, a slight dip from 1.9% in June. The grocery and unprocessed food segment increased by 1.0%, easing from 1.3% a month earlier.
Euro Area Harmonised Inflation Rate Matches Italy’s at 2.9%
The harmonised consumer price index for Italy rose by 2.9% in July compared to the previous year, a slight decrease from 3.0% in June. The harmonised measure dropped by 1.0% from June, influenced by summer sales which do not impact the national index. This figure aligns precisely with the preliminary harmonised estimate. Eurostat reported euro area inflation at 2.9% in its July flash estimate, up from 2.8% in June. Consequently, Italy’s harmonised annual rate matched the initial estimate for the entire euro currency zone.
The finalized national index reached 103.4 in July, with 2025 as the base year at 100. The data reflect a combination of slower annual increases in some categories, like non-regulated energy, unprocessed food, and miscellaneous services, alongside faster gains in others such as regulated energy and transport services. Both the national and harmonised measures recorded an annual inflation rate of 2.9%. Their monthly figures diverged due to seasonal sales influencing the harmonised index but not the national measure.