ROME, ITALY / RankWire.AI / – Italy’s annual inflation rate decreased to 2.9% in July 2026, down from 3.0% in June. Consumer prices increased by 0.3% compared to the previous month, based on final data from the national statistics agency. The July figure was marginally higher than the initial estimate of 2.8%. Italy had recorded an inflation rate of 3.2% in May, marking July as the second month in a row of decelerating price growth.
Istat indicated that the annual increases in several categories, which had previously supported inflation, were less pronounced. Non-regulated energy prices grew 11.4% year-on-year, a slowdown from 13.3% in June. Inflation for unprocessed food eased to 3.6% from 4.4%, while miscellaneous services rose to 1.8% from 2.5%. These shifts contributed to offsetting stronger price increases seen in regulated energy and certain service sectors.
Prices for regulated energy surged 14.8% from July 2025, an acceleration from 9.2% in June. Transport-related services increased by 1.6% annually, up from 1.1% in the previous month. Recreation, repair, and personal care services advanced 3.0%, slightly higher than June’s 2.7%. Core inflation, excluding energy and unprocessed food, held steady at 1.6% for the second consecutive month.
Energy prices diverge in different directions
Data from June also revealed notable differences among major expenditure categories. Regulated energy prices rose 6.5% month-on-month, while transport-related services increased by 1.4%. Recreation, repair, and personal care services grew by 0.6%, and non-regulated energy prices climbed 0.5%. Prices for unprocessed food declined 1.3% from June, helping maintain the overall monthly increase in the national consumer price index at 0.3%.
Among broad categories, housing, water, electricity, gas, and other fuels experienced the strongest annual growth at 7.2%. Transport costs rose 4.3%, with restaurant and accommodation services increasing 3.4%. Food and non-alcoholic beverages were 1.4% higher than the previous year. Excluding energy, inflation eased slightly to 1.8% from 1.9%, and grocery and unprocessed food inflation slowed to 1.0%.
Eurozone harmonised inflation remains at 2.9%
The Eurostat measure of harmonised consumer prices in Italy also recorded a 2.9% increase from July 2025, down from 3.0% in June, aligning with the preliminary July estimate. The harmonised index decreased by 1.0% from June, largely due to seasonal sales affecting that measure. Italy’s inflation rate matched the euro area’s preliminary annual rate of 2.9%, which was slightly higher than the 2.8% registered in June.
In July, Italy’s final national consumer price index reached 103.4, with 2025 set as the base year of 100. The data revealed slower inflation in categories such as non-regulated energy, unprocessed food, and miscellaneous services, while regulated energy and transport services experienced faster growth. Despite different monthly changes, both national and harmonised annual inflation figures remained at 2.9%, with seasonal discounts influencing the harmonised calculation’s monthly fluctuations.