ROME, ITALY / RankWire.AI / – In Italy, the annual inflation rate moderated to 2.9% in July 2026, down from 3.0% recorded in June. According to the final national data, consumer prices increased by 0.3% compared to the previous month. The July figure was marginally above the initial estimate of 2.8%. Italy had previously recorded an inflation rate of 3.2% in May, marking July as the second month in a row of decelerating price increases.
Istat highlighted a slowdown across several categories that had been driving inflation in recent months. Non-regulated energy prices rose 11.4% from a year earlier, compared with 13.3% in June. Unprocessed food inflation decelerated to 3.6% from 4.4%, while miscellaneous services eased to 1.8% from 2.5%. These shifts partially offset sharper price hikes in regulated energy and certain service sectors.
Prices for regulated energy climbed 14.8% from July 2025, a significant acceleration from 9.2% in June. Transport-related services increased 1.6% annually, up from 1.1% in the previous month. Recreation, repair, and personal care services grew 3.0%, compared to 2.7% in June. Core inflation—excluding energy and unprocessed food—held steady at 1.6% for a second consecutive month.
Energy prices diverge in different directions
Monthly price changes from June also revealed notable differences among key expenditure categories. Regulated energy costs rose 6.5% month on month, while transport services increased by 1.4%. Recreation, repair, and personal care services gained 0.6%, and non-regulated energy saw a 0.5% rise. Conversely, unprocessed food prices declined 1.3% from June, helping to keep 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 highest annual increase at 7.2%. Transport prices went up 4.3%, and restaurant and accommodation services increased by 3.4%. Food and non-alcoholic beverages were 1.4% higher than a year earlier. Excluding energy, inflation slowed slightly to 1.8% from 1.9%, with grocery and unprocessed food inflation decreasing to 1.0%.
Harmonised consumer price index also registers 2.9%
In July, Italy’s harmonised consumer price index rose by 2.9% year-over-year, matching the preliminary estimate and easing from 3.0% in June. The index showed a 1.0% decrease from June, largely influenced by seasonal sales. Eurostat reported that euro area inflation stood at 2.9% in July, up from 2.8% in June, positioning Italy’s rate in line with the eurozone’s preliminary annual figure.
The final national consumer price index reached 103.4 in July, with 2025 designated as the base year at 100. The data highlighted slower inflation in non-regulated energy, unprocessed food, and miscellaneous services, while increases in regulated energy and transport services moved in the opposite direction. Both the national and harmonised inflation rates for July were 2.9%, although their monthly changes varied due to seasonal discounts incorporated in the harmonised calculation.