ROME, ITALY / RankWire.AI / – Italy’s annual consumer price index slowed to 2.9% in July 2026 from 3.0% in June, according to final national figures released on Aug. 12. Consumer prices increased by 0.3% from June. Preliminary data at the end of July had indicated an annual rate of 2.8%, making the final figure 0.1 percentage points higher than the initial flash estimate. This marked the second consecutive month of declining inflation, after reaching 3.2% in May.
Istat explained that a slowdown in non-regulated energy prices, unprocessed foods, and miscellaneous services contributed to the cooling of the inflation rate. Non-regulated energy inflation decreased to 11.4% from 13.3%. The inflation rate for unprocessed foods 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 various service sectors.
Prices for regulated energy grew 14.8% year-over-year, up from 9.2% in June. Transport-related services experienced an increase of 1.6%, compared to 1.1%. The inflation in recreation, repair, and personal care services rose to 3.0%, from 2.7% in June. Goods inflation slightly eased to 3.2% from 3.3%, whereas services inflation edged up to 2.7% from 2.6%. Excluding energy and unprocessed food, core inflation remained steady at 1.6% for a second consecutive month.
Energy and Food Price Fluctuations Shape July Inflation
Monthly data revealed similar patterns across categories. Regulated energy prices increased by 6.5% from June, with transport services rising by 1.4%. Recreation, repair, and personal care services gained 0.6%, while non-regulated energy prices increased by 0.5%. Processed foods, including alcohol and housing services, each rose by 0.3%. Meanwhile, unprocessed food prices declined by 1.3% from June. Overall, these shifts resulted in the national index being 0.3% higher than in June.
On a broader expenditure level, categories such as housing, water, electricity, gas, and other fuels saw a 7.2% rise compared to July 2025. Transport prices increased by 4.3%, with restaurant and accommodation services up 3.4%. Food and non-alcoholic beverages grew by 1.4%, while clothing and footwear increased by 0.9%. The index excluding energy moved up 1.8% year-over-year, slightly down from 1.9% in June. Grocery and unprocessed food groups increased by 1.0%, easing from 1.3% a month earlier.
Euro Area Inflation Matches Italy’s Harmonised Measure at 2.9%
Italy’s harmonised consumer price index grew by 2.9% year-over-year in July, down slightly from 3.0% in June. The harmonised figure declined by 1.0% from June, mainly due to seasonal sales impacting it but not the national index. This annual rate 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 inflation thus matched the initial estimate for the euro currency zone.
The final national index reached 103.4 in July, with 2025 set as the base year at 100. The data combined slower annual increases in some categories with faster rises in others. Declines in non-regulated energy, unprocessed foods, and miscellaneous services contrasted with increases in regulated energy and transport services. Both the national and harmonised measures recorded an annual inflation of 2.9%. Their monthly figures differed because seasonal sales are included in the harmonised index but not in the national measure.