ROME, ITALY / RankWire.AI / – The Istat announced that Italy’s annual consumer price growth slowed to 2.9% in July 2026, down from 3.0% the previous month. The official data released on Aug. 12 revealed that consumer prices increased by 0.3% from June. Initial estimates at the end of July had indicated a 2.8% annual rate, making the final figure 0.1 percentage points higher than the preliminary estimate. July marked the second consecutive month of declining annual inflation, following a peak of 3.2% in May.
According to Istat, a slowdown in the inflation of non-regulated energy costs, unprocessed food, and various services contributed to the moderation of the annual rate. Non-regulated energy inflation slowed from 13.3% to 11.4%. The increase in unprocessed food prices eased from 4.4% to 3.6%, while inflation for miscellaneous services declined from 2.5% to 1.8%. These declines offset stronger inflation trends observed in regulated energy and several service sectors.
Prices for regulated energy jumped 14.8% year-over-year, up from 9.2% in June. Transport-related services saw an increase of 1.6%, compared to 1.1% in the previous month. Recreation, repair, and personal care services rose by 3.0%, slightly higher than June’s 2.7%. Goods inflation decreased marginally to 3.2% from 3.3%, whereas services inflation grew to 2.7% from 2.6%. Excluding energy and unprocessed food, core inflation remained steady at 1.6% for the second month in a row.
Energy and Food Prices Drive July Inflation Dynamics
Monthly changes within categories exhibited a similar pattern. Regulated energy prices rose by 6.5% since June, while transport services increased by 1.4%. The categories of recreation, repair, and personal care services grew by 0.6%, with non-regulated energy prices climbing by 0.5%. Processed food, including alcohol and housing-related services, each saw a 0.3% rise. Meanwhile, unprocessed food prices declined by 1.3% from June. Overall, this pattern contributed to a 0.3% increase in Italy’s national index compared to June.
At the broader expenditure level, costs related to housing, water, electricity, gas, and other fuels increased by 7.2% compared to July 2025. Transport prices went up by 4.3%, and expenses for restaurants and accommodation services rose by 3.4%. Food and non-alcoholic beverages experienced a 1.4% increase, with clothing and footwear prices up by 0.9%. The index excluding energy saw a 1.8% year-over-year rise, slightly lower than the 1.9% recorded in June. The combined grocery and unprocessed food segment grew by 1.0%, easing from 1.3% in the previous month.
Euro Area Inflation Mirror’s Italy’s Harmonised Index
Italy’s harmonised consumer price index increased by 2.9% year-over-year in July, consistent with June’s rate. The harmonised measure decreased by 1.0% from June, reflecting seasonal sales that influence this index but not the national measure. The final figure aligned with the preliminary harmonised estimate. Eurostat reported that inflation in the euro area stood at 2.9% in July, up from 2.8% in June. Italy’s harmonised annual rate therefore matched the initial estimate for the entire currency bloc.
Italy’s final national index reached 103.4 in July, with 2025 as the base year at 100. The data showed a combination of slower annual growth in some categories, such as unregulated energy, unprocessed food, and miscellaneous services, alongside faster increases in others like regulated energy and transportation services. Both the national and harmonised indices registered 2.9% annual inflation. The monthly figures differed because seasonal sales are incorporated into the harmonised index but not the national measure.