ROME, ITALY / RankWire.AI / – In July 2026, Italy experienced a slowdown in its annual consumer inflation rate, which decreased to 2.9% from 3.0% in June. According to definitive national figures published on Aug. 12, consumer prices increased by 0.3% compared to June. Preliminary data at the end of July had indicated an annual rate of 2.8%. The final figure, therefore, was 0.1 percentage points higher than the initial flash estimate. July marked the second consecutive month of declining inflation after reaching 3.2% in May.
Istat attributed the slowdown to more modest growth in prices for non-regulated energy, unprocessed food, and various services. Specifically, inflation in non-regulated energy dropped to 11.4% from 13.3%. Unprocessed food inflation eased to 3.6% from 4.4%, and inflation for miscellaneous services decreased to 1.8% from 2.5%. These reductions balanced out the increased inflation in regulated energy and certain service sectors.
Regulated energy costs rose by 14.8% year over year, accelerating from 9.2% in June. Transportation services saw a 1.6% increase, up from 1.1%. The expenses for recreation, repair, and personal care services increased by 3.0%, compared with 2.7% in June. Meanwhile, goods inflation slightly declined to 3.2% from 3.3%, and services inflation slightly increased to 2.7% from 2.6%. Core inflation, which excludes energy and unprocessed food, remained steady at 1.6% for a second month.
Energy and Food Prices Drive July Inflation Changes
Monthly data revealed similar patterns across categories. Regulated energy costs increased by 6.5% since June, and transport-related services grew by 1.4%. Expenses for recreation, repair, and personal care services increased by 0.6%, while non-regulated energy prices moved up by 0.5%. Processed food, including alcohol and housing-related services, each rose by 0.3%. Conversely, unprocessed food prices declined by 1.3% compared to June. These shifts contributed to an overall increase of 0.3% in Italy’s national index from the previous month.
At the broader expenditure level, categories such as housing, water, electricity, gas, and other fuels experienced a 7.2% rise compared to July 2025. Transport prices went up by 4.3%, while restaurants and accommodation services increased by 3.4%. Food and non-alcoholic beverages saw a 1.4% increase, and clothing and footwear prices rose by 0.9%. The index excluding energy grew by 1.8% year over year, slightly down from 1.9% in June. The combined grocery and unprocessed food index rose by 1.0%, easing from 1.3% the previous month.
Euro Area Harmonised Inflation Parallels Italy’s Rate
In July, Italy’s harmonised consumer price index increased by 2.9% compared to the same month in the previous year, down from 3.0% in June. The harmonised index fell by 1.0% from June, primarily due to seasonal sales that influence this measure but not the national index. This final figure matched the initial harmonised estimate. Eurostat reported that the euro area’s inflation rate for July was 2.9%, up from 2.8% in June. Italy’s harmonised annual rate thus aligned with the preliminary rate observed across the eurozone.
The definitive national index for July reached 103.4, with 2025 as the base year at 100. The data reflected slower annual increases in some categories and faster increases in others. While non-regulated energy, unprocessed food, and miscellaneous services experienced deceleration, regulated energy and transport services saw acceleration. Both the national and harmonised measures recorded an inflation rate of 2.9%. Their monthly readings varied due to seasonal sales included in the harmonised index but not in the national measure.