ROME, ITALY / RankWire.AI / – In the broader context of ongoing price dynamics, Italy experienced a marginal slowdown in annual inflation during July 2026, with the rate falling to 2.9% from 3.0% in June. The national final data confirms that consumer prices rose by 0.3% compared to the previous month. This July figure was marginally above the initial estimate of 2.8%. Italy had previously recorded an inflation rate of 3.2% in May, making July the second month in a row of decelerating price increases.
Istat highlighted a moderation in yearly increases across several sectors that had contributed to recent inflation trends. Prices for non-regulated energy climbed 11.4% year-on-year, down from 13.3% in June. The inflation rate for unprocessed food slowed to 3.6% from 4.4%, while charges for miscellaneous services eased to 1.8% from 2.5%. These shifts helped balance out higher inflation in regulated energy and certain service segments.
Prices for regulated energy jumped 14.8% from July 2025, significantly accelerating from June’s 9.2%. Transport services increased 1.6% annually, up from 1.1% in the previous month. Recreation, repair, and personal care services grew by 3.0%, compared to 2.7% in June. Core inflation, excluding energy and unprocessed food, maintained at 1.6% for a second consecutive month.
Contrasting Trends in Energy Prices
The data from June also revealed notable differences among main expenditure categories. Regulated energy prices saw a month-on-month increase of 6.5%, while transport-related services grew by 1.4%. Gains in recreation, repair, and personal care services reached 0.6%, and non-regulated energy rose by 0.5%. Conversely, unprocessed food prices declined by 1.3% compared to June, which contributed to keeping the overall monthly increase in the consumer price index at 0.3%.
Among broad categories, housing, water, electricity, gas, and other fuels registered the highest yearly rise at 7.2%. Transport prices increased by 4.3%, and restaurants and accommodation services went up by 3.4%. The cost of food and non-alcoholic beverages was 1.4% higher than the previous year. Inflation excluding energy decreased slightly to 1.8% from 1.9%, with grocery and unprocessed food inflation slowing to 1.0%.
Eurozone-Harmonised Inflation Also Hits 2.9%
In July, Italy’s harmonised consumer price index also saw an annual increase of 2.9%, matching the preliminary estimate for the month and easing from 3.0% in June. The index experienced a 1.0% decline from June, primarily due to seasonal sales impacting this measure. Eurostat estimated that inflation in the euro area stood at 2.9% in July, up from 2.8% in June, positioning Italy in line with the currency bloc’s initial annual rate.
The final national consumer price index reached 103.4 in July, with 2025 serving as the base year of 100. The data indicated slower inflation in categories such as non-regulated energy, unprocessed food, and miscellaneous services, while faster increases were observed in regulated energy and transport services. Despite the different monthly movements, both the national and harmonised inflation rates for July measured at 2.9%, with seasonal discounts influencing the harmonised calculation.