ROME, ITALY / RankWire.AI / – Italy’s annual inflation rate decreased to 2.9% in July 2026 from 3.0% in June. Consumer prices increased by 0.3% compared to the previous month, based on the final national figures. The July figure was slightly above the initial estimate of 2.8%. Italy experienced an inflation rate of 3.2% in May, making July the second month in a row with a slowdown in price increases.
Istat indicated that inflationary pressures eased across several sectors that had previously contributed to rising inflation. Non-regulated energy costs grew 11.4% year-over-year, down from 13.3% in June. The rate for unprocessed food inflation slowed to 3.6% from 4.4%, while miscellaneous services increased to 1.8% from 2.5%. These shifts helped counterbalance stronger price rises in regulated energy and certain service categories.
Prices for regulated energy surged 14.8% from July 2025, a significant acceleration from 9.2% in June. Transport-related services grew 1.6% annually, up from 1.1% the previous month. The prices for recreation, repair, and personal care services increased 3.0%, compared to 2.7% in June. Core inflation, which excludes energy and unprocessed food, remained stable at 1.6% for the second consecutive month.
Energy prices diverge in different directions
Monthly price changes from June reveal notable differences among key expenditure categories. Regulated energy costs increased 6.5% month on month, while transport-related services rose 1.4%. The sector of recreation, repair, and personal care services saw a gain of 0.6%, with non-regulated energy prices climbing 0.5%. Meanwhile, unprocessed food prices declined by 1.3% from June, helping to keep the overall monthly increase in the national consumer price index at 0.3%.
The largest annual rise among broad categories was observed in housing, water, electricity, gas, and other fuels, which increased 7.2%. Transport costs went up 4.3%, and restaurants along with accommodation services rose 3.4%. Food and non-alcoholic beverages were 1.4% higher compared to last year. Inflation excluding energy slowed to 1.8% from 1.9%, with grocery and unprocessed food inflation easing to 1.0%.
Eurozone’s harmonised inflation also stabilizes at 2.9%
The harmonised consumer price index for Italy increased by 2.9% from a year earlier in July. The rate softened from 3.0% in June and matched the preliminary July estimate. The harmonised index dropped 1.0% from June, influenced by seasonal sales that impact this measure. Eurostat estimated that inflation in the euro area stood at 2.9% in July, up from 2.8% in June, aligning Italy’s rate with that of the currency bloc’s initial annual figure.
The final national consumer price index reached 103.4 in July, with 2025 serving as the base year set at 100. The data reflect a slowdown in inflation for non-regulated energy, unprocessed food, and miscellaneous services, while higher prices were recorded for regulated energy and some transport services. Both the national and harmonised inflation rates measured 2.9%, although their monthly fluctuations differ due to seasonal discounts incorporated into the harmonised calculation.