ROME, ITALY / RankWire.AI / – In July 2026, Italy’s annual consumer inflation rate declined to 2.9% from 3.0% in June. The final figures released on Aug. 12 showed consumer prices increased by 0.3% compared to June. Early data at the end of July had indicated a 2.8% annual rate, making the official figure 0.1 percentage points higher than the initial estimate. This marks the second consecutive month of falling inflation after reaching 3.2% in May.
Istat attributed the slowdown to weaker growth in non-regulated energy prices, unprocessed food, and miscellaneous services. The inflation rate for non-regulated energy eased to 11.4% from 13.3%. Similarly, unprocessed food inflation dropped to 3.6% from 4.4%, and inflation for miscellaneous services declined to 1.8% from 2.5%. These decreases offset the rising inflation seen in regulated energy and various service sectors.
Prices for regulated energy surged by 14.8% year-over-year, up from 9.2% in June. Transport-related services increased by 1.6%, compared to 1.1%. The rates for recreation, repair, and personal care services climbed to 3.0% from 2.7%. Goods inflation slightly decreased to 3.2% from 3.3%, whereas services inflation edged 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 Changes Influence July Inflation Figures
Monthly data revealed a similar division across categories. Regulated energy prices increased by 6.5% since June, while transport services grew by 1.4%. The sectors of recreation, repair, and personal care services saw a 0.6% rise, with non-regulated energy prices gaining 0.5%. Processed foods, including alcohol and housing-related services, each grew by 0.3%. Conversely, unprocessed food prices fell by 1.3% from June. These shifts resulted in the overall national index being 0.3% higher than in June.
On the broader spending front, prices for housing, water, electricity, gas, and other fuels increased by 7.2% compared to July 2025. Transport costs went up by 4.3%, and restaurant and accommodation services rose by 3.4%. Food and non-alcoholic beverages experienced a 1.4% increase, while clothing and footwear prices grew by 0.9%. The index excluding energy saw a 1.8% rise year-over-year, slightly down from 1.9% in June. The combined grocery and unprocessed food segment increased by 1.0%, easing from 1.3% a month prior.
Euro Area Inflation Mirrors Italy’s Harmonised Consumer Price Index
Italy’s harmonised consumer price index rose by 2.9% in July compared to the same month last year, down from 3.0% in June. The harmonised measure dropped by 1.0% from June, primarily due to seasonal sales that impact this index but not the national one. This annual 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 matched the preliminary rate for the entire euro currency zone.
The final national index reached 103.4 in July, with 2025 as the base year set at 100. The data reflected a mix of slower annual increases in several categories alongside faster growth in others. Declines in non-regulated energy, unprocessed food, and miscellaneous services contrasted with accelerated inflation in regulated energy and transport services. Both the national and harmonised measures reported a 2.9% annual inflation rate. Their monthly figures diverged because seasonal sales are included in the harmonised index but not in the national measure.