ROME, ITALY / RankWire.AI / – Italy’s yearly consumer price growth eased to 2.9% in July 2026, down from 3.0% in June. According to final national figures released on Aug. 12, consumer prices increased by 0.3% compared to June. Initial estimates at the end of July had indicated an annual rate of 2.8%, so the final figure was 0.1 percentage points higher than the preliminary estimate. This marks a second consecutive month of declining inflation after reaching 3.2% in May.
Istat attributed the slowdown primarily to decelerated growth in non-regulated energy costs, unprocessed foods, and various services. Non-regulated energy inflation dropped to 11.4% from 13.3%, while unprocessed food inflation decreased to 3.6% from 4.4%. Inflation in miscellaneous services also eased to 1.8% from 2.5%. These declines offset the acceleration seen in regulated energy prices and several service sectors.
Regulated energy costs surged 14.8% year-over-year, surpassing June’s 9.2%. Transport services rose 1.6%, up from 1.1%. The recreation, repair, and personal care sectors increased by 3.0%, compared to 2.7% in June. Goods inflation slowed slightly to 3.2% from 3.3%, while services inflation increased marginally to 2.7% from 2.6%. Core inflation, which excludes energy and unprocessed food, remained steady at 1.6% for the second consecutive month.
Energy and Food Prices Drive July Inflation Changes
Monthly variations reflected similar trends across categories. Regulated energy prices increased by 6.5% from June, with transport-related services up by 1.4%. The sectors of recreation, repair, and personal care gained 0.6%, while non-regulated energy costs grew by 0.5%. Processed foods, including alcohol and housing services, each rose by 0.3%. Meanwhile, unprocessed food prices fell by 1.3% compared to June. Overall, this pattern contributed to a 0.3% rise in the national index from the previous month.
On a broader spending basis, prices for housing, water, electricity, gas, and other fuels increased 7.2% compared to July 2025. Transport costs went up 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 increased 0.9%. Excluding energy, the overall index grew by 1.8% year-over-year, slightly below June’s 1.9%. Grocery and unprocessed food prices increased by 1.0%, easing from 1.3% last month.
Euro Area Inflation Matches Italy’s Harmonised Rate
Italy’s harmonised consumer price index increased by 2.9% in July compared to the previous year, down from 3.0% in June. The harmonised measure fell by 1.0% from June, influenced by summer sales not reflected in the national index. This annual figure aligned exactly with the initial harmonised estimate. Eurostat reported euro area inflation at 2.9% in its July flash estimate, up slightly from 2.8% in June. Consequently, Italy’s harmonised annual rate is consistent with the preliminary figure for the entire currency bloc.
The final national index reached 103.4 in July, based on 2025 at 100. The data showed a mix of slower annual increases in some categories—such as non-regulated energy, unprocessed food, and miscellaneous services—and faster growth in regulated energy and transport sectors. Both the national and harmonised indices recorded an annual inflation of 2.9%. Their monthly differences stem from seasonal sales affecting the harmonised measure but not the national index, which leads to slight variances in monthly readings.