ROME, ITALY / RankWire.AI / – According to Istat, Italy’s annual inflation rate for consumers eased to 2.9% in July 2026, down from 3.0% recorded in June. The definitive national statistics released on Aug. 12 indicate that consumer prices increased by 0.3% from June. Initially, at the end of July, preliminary figures suggested an annual rate of 2.8%. Consequently, the final data was 0.1 percentage points higher than the initial flash estimate. July marked the second consecutive month of decline in the annual inflation rate, which had peaked at 3.2% in May.
Istat explained that a slowdown in non-regulated energy prices, unprocessed food, and various services contributed to the cooling of the inflation rate. Non-regulated energy inflation eased to 11.4% from 13.3%. The inflation rate for unprocessed food declined to 3.6% from 4.4%, while inflation for miscellaneous services dropped to 1.8% from 2.5%. These decreases offset the higher inflation observed in regulated energy and certain service sectors.
Prices for regulated energy surged 14.8% year over year, up from 9.2% in June. Transport-related services grew by 1.6%, compared to 1.1%. Recreation, repair, and personal care services increased 3.0%, slightly higher than the 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, held steady at 1.6% for the second month in a row.
Energy and Food Price Dynamics Influence July’s Inflation
On a monthly basis, similar trends were observed across categories. Regulated energy prices increased by 6.5% from June, while transport services rose 1.4%. Recreation, repair, and personal care services grew by 0.6%, and non-regulated energy prices increased 0.5%. Processed food, including alcohol and housing-related services, each saw a 0.3% rise. In contrast, unprocessed food prices declined by 1.3% from June. This pattern resulted in the overall national index being 0.3% higher than in the previous month.
Looking at broader expenditure groups, housing, water, electricity, gas, and other fuels increased by 7.2% compared to July 2025. Transport prices went up 4.3%, and restaurant and accommodation services rose 3.4%. Food and non-alcoholic beverages experienced a 1.4% increase, while clothing and footwear prices grew by 0.9%. The index excluding energy advanced 1.8% year over year, slightly down from 1.9% in June. The grocery and unprocessed food segment increased 1.0%, easing from 1.3% a month earlier.
The Harmonised Index Reflects Euro Area Trends at 2.9%
Italy’s harmonised consumer price index for July also rose 2.9% compared to the same month in 2025, down from 3.0% in June. The harmonised measure declined by 1.0% from June, primarily due to summer sales impacting it but not the national index. This annual figure matched the preliminary harmonised estimate. Eurostat reported that inflation in the euro area stood at 2.9% in its July flash estimate, a slight increase from 2.8% in June. Italy’s harmonised annual rate thus aligned with the provisional rate for the currency bloc.
The final national index reached 103.4 in July, using 2025 as the base year at 100. The data reflected a combination of slower annual increases in several categories alongside faster rises in others. While non-regulated energy, unprocessed food, and miscellaneous services slowed, regulated energy and transport services experienced acceleration. Both the national and harmonised measures recorded a 2.9% annual inflation rate. Their monthly readings differed because seasonal sales are factored into the harmonised index but not the national measure.