ROME, ITALY / RankWire.AI / – In July 2026, Italy experienced a moderation in its annual consumer inflation, which decreased to 2.9% from 3.0% recorded in June. The definitive national figures released on Aug. 12 indicated that consumer prices increased by 0.3% compared to June. Earlier, at the end of July, preliminary data had estimated the annual inflation rate at 2.8%. Consequently, the final figure was 0.1 percentage points higher than the initial flash estimate. This month marked the second consecutive month of falling annual inflation, after it peaked at 3.2% in May.
Istat explained that the slowdown was driven by reduced growth in non-regulated energy prices, unprocessed food, and various services, which helped temper the overall inflation rate. Specifically, non-regulated energy inflation eased to 11.4% from 13.3%. Inflation for unprocessed food declined to 3.6% from 4.4%. Additionally, inflation for miscellaneous services dropped to 1.8% from 2.5%. These decreases offset the accelerated inflation seen in regulated energy and several other service sectors.
Regulated energy prices jumped 14.8% year over year, an increase from 9.2% in June. The cost of transport-related services grew by 1.6%, up from 1.1%. Recreation, repair, and personal care services saw a 3.0% rise, compared to 2.7% in June. Goods inflation slightly eased to 3.2% from 3.3%, whereas services inflation edged up to 2.7% from 2.6%. The core inflation rate, which excludes energy and unprocessed food, remained steady at 1.6% for a second consecutive month.
Energy and Food Dynamics Influence July Inflation Trends
On a monthly basis, similar patterns across categories were observed. Regulated energy prices rose by 6.5% from June. Transport-related services increased by 1.4%, while recreation, repair, and personal care services gained 0.6%. Non-regulated energy prices increased by 0.5%. Processed food, including alcohol and housing-related services, each went up by 0.3%. Meanwhile, unprocessed food prices declined by 1.3% from June. These shifts contributed to the overall national index rising by 0.3% compared to the previous month.
At a broader expenditure level, categories such as housing, water, electricity, gas, and other fuels experienced a 7.2% increase from July 2025. Transport prices grew by 4.3%, and restaurant and accommodation services increased by 3.4%. Food and non-alcoholic beverages saw a 1.4% rise, while clothing and footwear grew by 0.9%. The index excluding energy advanced by 1.8% year over year, slightly down from 1.9% in June. The grocery and unprocessed food index increased by 1.0%, easing from 1.3% in the previous month.
Euro Area Inflation Parallels Italy’s Harmonised Rate
Italy’s harmonised consumer price index registered a 2.9% increase year over year in July, matching the rate observed in June. The harmonised figure decreased by 1.0% from June, influenced by seasonal sales that do not affect the national index. This final harmonised reading aligned with the initial estimate. Eurostat reported euro area inflation at 2.9% in its July flash estimate, a slight rise from 2.8% in June. Italy’s harmonised inflation rate therefore corresponded with the preliminary rate for the entire currency bloc.
The ultimate national index reached 103.4 in July, using 2025 as the base year at 100. The data combined slower annual increases in several categories with faster growth in others. While non-regulated energy, unprocessed food, and miscellaneous services experienced decelerations, regulated energy and transport services saw accelerations. Both the national and harmonised indices recorded an annual inflation rate of 2.9%. Their monthly differences stem from seasonal sales impacting the harmonised index but not the national measure.