ROME, ITALY / RankWire.AI / – Consumer prices in Italy increased by 0.3% from June to July 2026, leading to an annual inflation rate of 2.9%, down from 3.0% in June. According to the final national data released on Aug. 12, the consumer price index rose from the previous month. Earlier estimates had shown a 2.8% annual rate at the end of July, making the final figure 0.1 percentage points higher than the preliminary estimate. This marks the second consecutive month of declining yearly inflation, after it hit 3.2% in May.
Istat reported that slower increases in non-regulated energy costs, unprocessed food, and various services contributed to easing the inflation rate. Specifically, inflation in non-regulated energy slowed to 11.4% from 13.3%, while unprocessed food inflation decreased to 3.6% from 4.4%. Additionally, inflation for miscellaneous services dropped to 1.8% from 2.5%. These declines offset higher inflation seen in regulated energy prices and certain service sectors.
Regulated energy costs surged by 14.8% year over year, accelerating from 9.2% in June. Transport-related services increased by 1.6%, up from 1.1%. Recreation, repair, and personal care services rose by 3.0%, compared to 2.7% in June. Meanwhile, goods inflation slightly eased to 3.2% from 3.3%, but services inflation edged up to 2.7% from 2.6%. Core inflation, excluding energy and unprocessed food, remained steady at 1.6% for a second month in a row.
Energy and Food Price Trends Shape July’s Inflation Data
On a monthly basis, price movements across categories displayed a similar pattern. Regulated energy costs increased by 6.5% from June, while transport services went up by 1.4%. Recreation, repair, and personal care services grew by 0.6%, and non-regulated energy prices rose by 0.5%. Processed food, including alcohol and housing-related services, each grew by 0.3%. Conversely, unprocessed food prices declined by 1.3% from June. These shifts resulted in the overall national index rising 0.3% compared to the previous month.
Looking at broader expenditure categories, housing, water, electricity, gas, and other fuels saw a 7.2% increase from July 2025. Transport prices grew by 4.3%, while restaurant and accommodation services climbed by 3.4%. Food and non-alcoholic beverages increased by 1.4%, and clothing and footwear rose by 0.9%. The index excluding energy moved up by 1.8% year over year, slightly down from 1.9% in June. The grocery and unprocessed food segment saw a 1.0% rise, easing from 1.3% in the previous month.
Euro Area Inflation Matches Italy’s Harmonised Measure at 2.9%
Italy’s harmonised consumer price index increased by 2.9% year over year in July, a slight decrease from 3.0% in June. The harmonised rate fell by 1.0% from June, influenced by seasonal summer sales that do not impact the national index. The final figure aligned with the preliminary harmonised estimate. Eurostat reported that inflation across the euro area was 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 eurozone.
The national index finished July at 103.4, using 2025 as the base year (100). The data reflect a combination of slower annual gains in some categories, such as non-regulated energy, unprocessed food, and miscellaneous services, alongside faster increases in others like regulated energy and transport services. Both the national and harmonised measures showed an inflation rate of 2.9%. Their monthly figures differed because seasonal sales influence the harmonised index but not the national index.