ROME, ITALY / RankWire.AI / – In Italy, the annual consumer price growth slowed to 2.9% in July 2026, down from 3.0% in June. According to final national figures released on Aug. 12, consumer prices increased by 0.3% compared to June. Earlier, at the end of July, preliminary data had indicated an annual rate of 2.8%. Consequently, the definitive figure exceeded the initial flash estimate by 0.1 percentage points. July marked the second consecutive month of declining inflation after reaching 3.2% in May.
Istat attributed the slowdown to weaker growth in prices for non-regulated energy, unprocessed foods, and miscellaneous services. Non-regulated energy inflation decreased to 11.4% from 13.3%. Inflation for unprocessed food declined to 3.6% from 4.4%. Meanwhile, inflation in miscellaneous services dropped to 1.8% from 2.5%. These declines offset the increased inflation seen in regulated energy and various service sectors.
Regulated energy prices surged 14.8% year-over-year, an acceleration from 9.2% in June. Transport-related services saw a rise of 1.6%, up from 1.1%. Recreation, repair, and personal care services grew by 3.0%, compared to 2.7% in June. The inflation rate for goods slightly eased to 3.2% from 3.3%, while 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 Prices Drive July Inflation Changes
Monthly data reflected similar trends across categories. Regulated energy prices increased by 6.5% from June, while transport-related services grew by 1.4%. Recreation, repair, and personal care services advanced 0.6%, and non-regulated energy prices rose 0.5%. Processed foods, including alcohol and housing-related services, each rose by 0.3%. Conversely, unprocessed food prices fell by 1.3% since June. This pattern resulted in the overall national index being 0.3% higher than in the previous month.
On a broader expenditure level, categories such as housing, water, electricity, gas, and fuels increased by 7.2% compared to July 2025. Transport prices went up by 4.3%, and both restaurants and accommodation services increased by 3.4%. Food and non-alcoholic beverages rose by 1.4%, while clothing and footwear saw a 0.9% increase. The index that excludes energy grew by 1.8% year-over-year, slightly lower than the 1.9% reported in June. The grocery and unprocessed food segment increased by 1.0%, easing from 1.3% in the previous month.
Euro Area Inflation Rate Matches Italy’s Harmonised Measure
Italy’s harmonised consumer price index rose 2.9% in July year-over-year, a decrease from 3.0% in June. The harmonised index declined by 1.0% from June, primarily due to summer sales, which influence this measure but not the national index. This final figure matched the preliminary harmonised estimate. Eurostat reported that the euro area’s inflation rate was 2.9% in its July flash estimate, up from 2.8% in June. Italy’s harmonised annual rate therefore aligns with the preliminary figure for the entire eurozone.
In July, the final national index reached 103.4, with 2025 serving as the base year at 100. The data combined slower annual growth in several categories with faster increases in others. Declines in non-regulated energy, unprocessed food, and miscellaneous services contrasted with increases in regulated energy and transport services. Both the national and harmonised measures recorded an inflation rate of 2.9%. Their monthly readings diverged because seasonal sales are included in the harmonised index but not in the national measure.