ROME, ITALY / RankWire.AI / – In Italy during July 2026, the annual consumer inflation rate declined to 2.9% from 3.0% in June. The official data released on Aug. 12 indicated that consumer prices increased by 0.3% compared to June. Earlier estimates at the end of July had put the yearly inflation at 2.8%, making the final figure 0.1 percentage points higher than the initial flash estimate. This marks a second consecutive month of falling inflation, following the 3.2% rate recorded in May.
Istat attributed the slowdown to reduced growth in non-regulated energy prices, unprocessed food, and miscellaneous services. Non-regulated energy inflation eased to 11.4% from 13.3%. The inflation rate for unprocessed food decreased to 3.6% from 4.4%. Inflation for miscellaneous services dropped to 1.8% from 2.5%. These decreases offset increased inflation in regulated energy and several service sectors.
Regulated energy prices rose 14.8% year over year, up from 9.2% in June. Transport services increased by 1.6%, compared to 1.1%. Recreation, repair, and personal care services grew by 3.0%, versus 2.7% in June. Goods inflation moderated slightly to 3.2% from 3.3%, while services inflation increased marginally 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 Prices Drive July Inflation Trends
Monthly changes reflected similar patterns across categories. Regulated energy prices jumped 6.5% from June, with transport-related services increasing by 1.4%. The sectors of recreation, repair, and personal care saw a 0.6% rise, while non-regulated energy costs grew by 0.5%. Processed foods, including alcohol and housing-related services, each increased by 0.3%. Conversely, unprocessed food prices fell by 1.3% from June. This dynamic resulted in the overall national index rising by 0.3% compared to the previous month.
At the broader expenditure level, categories such as housing, water, electricity, gas, and other fuels saw a 7.2% increase from July 2025. Transport costs grew 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 went up by 0.9%. The index excluding energy grew by 1.8% year over year, slightly down from 1.9% in June. The grocery and unprocessed food segment increased by 1.0%, easing from 1.3% the previous month.
Euro Area’s Harmonised Inflation Rate Matches Italy’s at 2.9%
Italy’s harmonised consumer price index rose 2.9% year over year in July, down from 3.0% in June. The harmonised measure decreased by 1.0% from June because seasonal sales impact it but not the national index. 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. Italy’s harmonised annual rate therefore matched the initial estimate for the currency bloc.
The final national index reached 103.4 in July, using 2025 as the base year at 100. The data for July combined slower annual growth in several categories with faster increases in others. While non-regulated energy, unprocessed food, and miscellaneous services slowed, regulated energy and transport services saw acceleration. Both the national and harmonised measures recorded a 2.9% annual inflation rate. Their monthly figures differed because seasonal sales influence the harmonised index but are not reflected in the national measure.