ROME, ITALY / RankWire.AI / – In July 2026, Italy experienced a slowdown in its annual consumer inflation, which declined to 2.9% from 3.0% in June. The official national figures released on Aug. 12 indicated consumer prices increased by 0.3% compared to June. Preliminary data at the end of July had shown an annual rate of 2.8%, making the final figure 0.1 percentage points higher than the initial flash estimate. This month marked the second consecutive drop in annual inflation, following the 3.2% rate observed in May.
Istat explained that slower growth in non-regulated energy costs, unprocessed foods, and various services contributed to the easing of the annual inflation rate. Specifically, inflation in non-regulated energy slowed to 11.4% from 13.3%, while unprocessed food inflation eased to 3.6% from 4.4%. Additionally, inflation for miscellaneous services decreased to 1.8% from 2.5%. These declines offset increased inflation in regulated energy and certain service sectors.
Prices for regulated energy surged 14.8% year-over-year, accelerating from 9.2% in June. Transport-related services saw a 1.6% increase, up from 1.1%. Recreation, repair, and personal care services rose 3.0%, compared to 2.7% in June. Goods inflation slowed slightly 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 a second consecutive month.
Energy and Food Prices Drive July Inflation Changes
On a monthly basis, trends across categories showed similar patterns. Regulated energy prices increased by 6.5% from June, and transport services rose 1.4%. Recreation, repair, and personal care services gained 0.6%, while non-regulated energy costs increased by 0.5%. Processed food, including alcohol and housing-related services, each rose by 0.3%. In contrast, unprocessed food prices fell 1.3% compared to June. Overall, these shifts resulted in the national index being 0.3% higher than the previous month.
At the broader expenditure level, prices in housing, water, electricity, gas, and other fuels climbed 7.2% from July 2025. Transport costs increased by 4.3%, and restaurant and accommodation services grew by 3.4%. Food and non-alcoholic beverages experienced a 1.4% rise, while clothing and footwear prices increased 0.9%. The index excluding energy rose by 1.8% year over year, a slight decrease from 1.9% in June. The grocery and unprocessed food segment rose 1.0%, easing from 1.3% a month earlier.
Euro Area’s Inflation Rate Corresponds with Italy’s
Italy’s harmonised consumer price index rose 2.9% in July compared to the previous year, down from 3.0% in June. The harmonised measure decreased by 1.0% from June due to seasonal sales influencing it but not affecting the national index. This final figure matched the initial harmonised estimate. Eurostat reported the euro area inflation at 2.9% in its July flash estimate, up from 2.8% in June. Consequently, Italy’s harmonised annual inflation rate aligns with the preliminary rate for the currency bloc.
The final national index stood at 103.4 in July, with 2025 as the base year at 100. July’s data reflected a combination of slower annual growth in several categories, such as non-regulated energy, unprocessed food, and miscellaneous services, alongside faster increases in regulated energy and transport services. Both the national and harmonised measures recorded an annual inflation rate of 2.9%. The difference in their monthly readings stems from seasonal sales included in the harmonised index but not in the national index.
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