ROME, ITALY / RankWire.AI / – Italy’s annual consumer inflation rate declined slightly to 2.9% in July 2026 from 3.0% in June. According to the final national data released on Aug. 12, consumer prices increased by 0.3% from June. Earlier, at the end of July, preliminary figures indicated a rate of 2.8%. The official figure was therefore 0.1 percentage points higher than the initial flash estimate. This marks the second consecutive month of decreasing annual inflation, after reaching 3.2% in May.
Istat explained that moderation in non-regulated energy prices, unprocessed food, and various services contributed to cooling the yearly inflation rate. Non-regulated energy inflation slowed from 13.3% to 11.4%. Unprocessed food inflation eased from 4.4% to 3.6%, while inflation for miscellaneous services dropped from 2.5% to 1.8%. These decreases offset the uptick in regulated energy prices and certain service categories.
Prices for regulated energy surged 14.8% year over year, up from 9.2% in June. Transport-related services increased by 1.6%, compared to 1.1%. Recreation, repair, and personal care services rose by 3.0%, slightly higher than the 2.7% in June. Meanwhile, goods inflation edged down to 3.2% from 3.3%, whereas services inflation increased slightly to 2.7% from 2.6%. Excluding energy and unprocessed food, core inflation remained steady at 1.6% for the second month in a row.
Energy and Food Costs Drive July Inflation Dynamics
On a monthly basis, a similar pattern across categories was observed. Regulated energy prices grew by 6.5% from June, while transport-related services increased by 1.4%. Recreation, repair, and personal care services gained 0.6%, with non-regulated energy prices rising by 0.5%. Processed foods, including alcohol and housing-related services, each increased by 0.3%. Conversely, unprocessed food prices declined by 1.3% from June. These shifts resulted in the overall national index being 0.3% higher than in June.
At the broader expenditure level, categories such as housing, water, electricity, gas, and other fuels rose 7.2% compared to July 2025. Transport prices increased by 4.3%, and restaurants and accommodation services grew by 3.4%. Food and non-alcoholic beverages saw a 1.4% rise, while clothing and footwear increased by 0.9%. The index excluding energy showed a 1.8% year-over-year increase, down slightly from 1.9% in June. The combined grocery and unprocessed food segment rose by 1.0%, easing from 1.3% a month earlier.
Euro Area Harmonised Inflation Rate Matches Italy’s
Italy’s harmonised consumer price index increased by 2.9% year over year in July, matching the June figure of 3.0%. The harmonised measure dropped 1.0% from June, reflecting seasonal sales that impact it but not the national index. This final reading 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 matched the preliminary rate for the euro currency bloc.
The official national index reached 103.4 in July, with 2025 serving 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 slowed, regulated energy and transport services experienced acceleration. Both the national and harmonised indices recorded 2.9% annual inflation, with their monthly figures differing due to seasonal sales included in the harmonised measure but not in the national index.