ROME, ITALY / RankWire.AI / – Italy’s consumer inflation rate for July 2026 eased to 2.9% from 3.0% in June, according to finalized national data released on Aug. 12. The latest figures indicate that consumer prices increased by 0.3% from June. Initial preliminary data at the end of July had suggested an annual rate of 2.8%, making the final figure 0.1 percentage points higher than the initial estimate. This marks the second consecutive month of declining annual inflation, after the rate peaked at 3.2% in May.
Istat reported that a slowdown in non-regulated energy costs, unprocessed food, and various services contributed to the moderation of the annual inflation rate. Specifically, inflation for non-regulated energy decelerated to 11.4% from 13.3%. The increase in unprocessed food prices eased to 3.6% from 4.4%, while inflation for miscellaneous services declined to 1.8% from 2.5%. These decreases offset the stronger inflation observed in regulated energy and several service sectors.
Prices for regulated energy climbed 14.8% year over year, accelerating from a 9.2% rise in June. Transport-related services grew by 1.6%, up from 1.1%. Recreation, repair, and personal care services increased by 3.0%, compared to 2.7% in June. Meanwhile, goods inflation slightly eased to 3.2% from 3.3%, whereas 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, category movements showed a similar pattern. Regulated energy prices increased by 6.5% from June, while transport services rose by 1.4%. Gains were also seen in recreation, repair, and personal care services, which grew by 0.6%, and non-regulated energy prices, which rose by 0.5%. Processed food, including alcohol and housing-related services, each increased by 0.3%. Conversely, unprocessed food prices declined by 1.3% from June. Overall, these shifts resulted in the national index being 0.3% higher than in the previous month.
On the broader expenditure front, categories such as housing, water, electricity, gas, and other fuels increased by 7.2% compared to July 2025. Transport prices rose by 4.3%, with restaurant and accommodation services up by 3.4%. The cost of food and non-alcoholic beverages increased by 1.4%, and clothing and footwear saw a 0.9% rise. The index excluding energy grew by 1.8% year over year, slightly down from 1.9% in June. Grocery and unprocessed food prices increased by 1.0%, easing from 1.3% in the previous month.
Euro Area Inflation Rates Parallel Italy’s Harmonised CPI
Italy’s harmonised consumer price index rose 2.9% year over year in July, matching the June figure. The harmonised measure decreased by 1.0% from June due to summer sales, which influence this index but not the national CPI. This final 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 consequently mirrored the initial estimate for the entire currency bloc.
The final national index reached 103.4 in July, with 2025 as the base year set at 100. The data reflected a combination of slower annual gains in several categories, such as unregulated energy, unprocessed food, and miscellaneous services, alongside faster increases in regulated energy and transportation services. Both the national and harmonised indices recorded 2.9% annual inflation. Their monthly readings differ because seasonal sales are factored into the harmonised index but not the national measure.