ROME, ITALY / RankWire.AI / – In July 2026, Italy experienced a slight decrease in its annual consumer inflation rate, dropping to 2.9% from 3.0% in June. The final data released on Aug. 12 indicated consumer prices increased by 0.3% compared to June. Earlier estimates at the end of July had suggested a 2.8% rate, making the official figure 0.1 percentage points higher than the preliminary estimate. This marks the second consecutive month of declining inflation, after reaching 3.2% in May.
Istat attributed the slowdown to reduced inflation in non-regulated energy prices, unprocessed food, and miscellaneous services. Specifically, non-regulated energy inflation eased to 11.4% from 13.3%, unprocessed food inflation declined to 3.6% from 4.4%, and 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 increased 14.8% year-over-year, up from 9.2% in June. Transport services grew by 1.6%, compared to 1.1%. Recreation, repair, and personal care services saw a 3.0% rise, up from 2.7%. Goods inflation slightly eased to 3.2% from 3.3%, while services inflation edged up to 2.7% from 2.6%. Core inflation, which excludes energy and unprocessed food, remained steady at 1.6% for the second month in a row.
Energy and Food Price Fluctuations Drive July Inflation Dynamics
On a monthly basis, similar patterns emerged across categories. Regulated energy prices increased by 6.5% from June, while transport services went up by 1.4%. Recreation, repair, and personal care services gained 0.6%, with non-regulated energy prices rising by 0.5%. Processed food, including alcohol and housing-related services, each increased by 0.3%. Conversely, unprocessed food prices dropped 1.3% compared to June. Overall, these shifts contributed to a 0.3% rise in the national index from the previous month.
At a broader category level, expenses for housing, water, electricity, gas, and other fuels increased 7.2% compared to July 2025. Transport prices saw a 4.3% rise, while restaurant and accommodation services grew by 3.4%. Food and non-alcoholic beverages increased 1.4%, and clothing and footwear rose by 0.9%. The index excluding energy climbed 1.8% year-over-year, slightly below June’s 1.9%. Grocery and unprocessed food prices increased by 1.0%, down from 1.3% in the previous month.
Euro Area Inflation Mirrors Italy’s Harmonised Rate
Italy’s harmonised consumer price index increased by 2.9% in July compared to the same month last year, matching the June figure. The harmonised rate decreased by 1.0% from June due to seasonal summer sales impacting it but not the national index. This final figure aligns with 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 corresponds with 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 combined slower annual growth in several categories, such as unregulated energy, unprocessed food, and miscellaneous services, with faster increases in regulated energy and transport services. Both the national and harmonised measures recorded an inflation rate of 2.9% annually. Monthly differences stem from seasonal sales included in the harmonised index but excluded from the national calculation.