ROME, ITALY / RankWire.AI / – Italy’s annual consumer inflation rate decreased to 2.9% in July 2026, down from 3.0% in June. The definitive national figures released on Aug. 12 indicated that consumer prices increased by 0.3% compared to June. Initial data at the end of July suggested an annual rate of 2.8%, meaning the final reading was 0.1 percentage points higher than the preliminary estimate. July marked the second consecutive month of falling annual inflation, after the rate hit 3.2% in May.
Istat reported that slower increases in non-regulated energy costs, unprocessed foods, and miscellaneous services contributed to cooling the annual inflation rate. Specifically, inflation for non-regulated energy slowed to 11.4% from 13.3%. Unprocessed food inflation declined to 3.6% from 4.4%. The inflation rate for miscellaneous services also fell, reaching 1.8% from 2.5%. These declines offset stronger inflation in regulated energy prices and several service sectors.
Prices for regulated energy rose 14.8% year over year, an acceleration from 9.2% in June. The cost of transport-related services increased by 1.6%, compared to 1.1% previously. Recreation, repair, and personal care services went up 3.0%, slightly higher than the 2.7% in June. Meanwhile, goods inflation eased slightly to 3.2% from 3.3%, whereas services inflation grew 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 Movements Drive July Inflation Changes
Monthly data revealed a similar pattern across categories. Regulated energy costs increased by 6.5% from June, while transport services went up 1.4%. Recreation, repair, and personal care services gained 0.6%, and non-regulated energy prices rose 0.5%. Processed food, including alcohol and housing services, each increased by 0.3%. Conversely, unprocessed food prices declined by 1.3% from June. This pattern contributed to the overall national index being 0.3% higher than in June.
Looking at broader spending categories, housing, water, electricity, gas, and other fuels rose 7.2% compared to July 2025. Transport prices increased by 4.3%, and restaurant and accommodation services rose 3.4%. Food and non-alcoholic beverages saw a 1.4% increase, while clothing and footwear prices grew by 0.9%. The index excluding energy increased by 1.8% year over year, slightly below the 1.9% in June. Grocery and unprocessed food categories rose 1.0%, easing from 1.3% in the previous month.
The Harmonised Index Shows Alignment with Euro Area Inflation
Italy’s harmonised consumer price index climbed 2.9% annually in July, matching the June figure of 3.0%. The harmonised measure decreased by 1.0% from June, reflecting seasonal sales effects that do not influence the national index. This final figure aligned with the initial harmonised estimate. Eurostat reported that euro area inflation stood at 2.9% in its July flash estimate, up from 2.8% in June. Consequently, Italy’s harmonised annual rate was consistent with the preliminary rate for the euro currency bloc.
The final national index reached 103.4 in July, with 2025 serving as the base year at 100. The data combined slower annual growth in several categories with faster increases in others. Slower growth was observed in non-regulated energy, unprocessed food, and miscellaneous services, while regulated energy and transport services experienced acceleration. Both the national and harmonised measures reported an inflation rate of 2.9%. Their monthly figures differed due to seasonal sales impacting the harmonised index but not the national measurement.