ROME, ITALY / RankWire.AI / – In July 2026, Italy’s annual consumer inflation rate decreased to 2.9% from 3.0% in June, with final national data released on Aug. 12 indicating consumer prices rose by 0.3% from June. The preliminary data at the end of July had shown an annual rate of 2.8%, making the final figure 0.1 percentage point higher than the initial flash estimate. July marked the second consecutive month of declining inflation after reaching 3.2% in May.
Istat explained that slower increases in non-regulated energy prices, unprocessed food, and miscellaneous services contributed to the cooling of the annual rate. Non-regulated energy inflation slowed to 11.4% from 13.3%, unprocessed food inflation eased to 3.6% from 4.4%, and inflation for miscellaneous services fell to 1.8% from 2.5%. These declines offset the stronger inflation seen in regulated energy and several service categories.
Prices for regulated energy jumped 14.8% year over year, up from 9.2% in June, while transport-related services increased by 1.6%, compared to 1.1%. Recreation, repair, and personal care services rose 3.0%, from 2.7% in June. Goods inflation decreased slightly to 3.2% from 3.3%, whereas services inflation grew to 2.7% from 2.6%. Core inflation, which excludes energy and unprocessed food, remained steady at 1.6% for the second consecutive month.
Energy and Food Prices Drive July Inflation Trends
Monthly movements mirrored these category-specific trends, with regulated energy prices increasing 6.5% from June, and transport-related services rising by 1.4%. Recreation, repair, and personal care services grew by 0.6%, while non-regulated energy prices edged up 0.5%. Processed food, including alcohol and housing-related services, each increased by 0.3%. Meanwhile, unprocessed food prices declined by 1.3% from June. This pattern resulted in the overall national index being 0.3% higher than in June.
On a broader spending level, categories such as housing, water, electricity, gas, and other fuels experienced a 7.2% rise from July 2025. Transport prices increased by 4.3%, and restaurants and accommodation services grew by 3.4%. Food and non-alcoholic beverages went up 1.4%, with clothing and footwear rising 0.9%. The index excluding energy increased by 1.8% year over year, a slight decrease from 1.9% in June. The grocery and unprocessed food index rose 1.0%, easing from 1.3% the previous month.
Euro Area Harmonised Measure Reflects Same Rate
Italy’s harmonised consumer price index increased by 2.9% year over year in July, down from 3.0% in June. The harmonised measure declined by 1.0% from June due to seasonal sales influencing it but not the national index. This annual figure matched the initial harmonised estimate. Eurostat reported euro area inflation at 2.9% in its July flash estimate, up from 2.8% in June. Consequently, Italy’s harmonised annual rate aligned with the preliminary rate for the entire euro zone.
In July, the final national index reached 103.4, using 2025 as the base year at 100. The data combined slower annual gains in some categories with faster increases in others. While non-regulated energy, unprocessed food, and miscellaneous services decelerated, regulated energy and transport services experienced acceleration. Both the national and harmonised measures recorded an inflation rate of 2.9%. Their monthly figures differed because seasonal sales impact the harmonised index but not the national measurement.