ROME, ITALY / RankWire.AI / – The national statistics agency, Istat, reported that 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 final official figures. The July figure was slightly above the initial estimate of 2.8%. Italy recorded an annual inflation rate of 3.2% in May, making July the second consecutive month of decelerating price rises.
Istat highlighted a moderation in the year-over-year increases across several sectors that had contributed to inflation in recent months. Non-regulated energy prices grew 11.4% from the same period last year, compared with 13.3% in June. Inflation in unprocessed food slowed to 3.6% from 4.4%, while miscellaneous services eased to 1.8% from 2.5%. These developments helped balance out stronger price increases in regulated energy and certain service categories.
Prices for regulated energy surged 14.8% from July 2025, a notable acceleration from the 9.2% increase observed in June. Transport-related services experienced a 1.6% annual rise, up from 1.1% the previous month. Recreation, repair, and personal care services increased by 3.0%, compared to 2.7% in June. The core inflation rate—excluding energy and unprocessed food—remained steady at 1.6% for the second consecutive month.
Energy prices diverge in different directions
The data from June also indicated distinct variations among key expenditure groups. Regulated energy costs increased 6.5% month on month, while transport-related services rose by 1.4%. Spending on recreation, repair, and personal care services grew 0.6%, with non-regulated energy prices rising 0.5%. Meanwhile, unprocessed food prices declined by 1.3% compared to June, contributing to the overall monthly increase of 0.3% in the national consumer price index.
Among broad categories, housing, water, electricity, gas, and other fuels experienced the largest annual increase at 7.2%. Transport costs grew 4.3%, and restaurants and accommodation services saw a 3.4% rise. Food and non-alcoholic beverages were 1.4% more expensive than a year earlier. Excluding energy, inflation slowed to 1.8% from 1.9%, with grocery and unprocessed food inflation decreasing to 1.0%.
July’s harmonised inflation maintains at 2.9%
Italy’s harmonised consumer price index, which aligns with European standards, also increased by 2.9% in July, matching the preliminary estimate and falling from 3.0% in June. The index dropped 1.0% from June, influenced by seasonal sales. Eurostat estimated that inflation across the euro area stood at 2.9% in July, up from 2.8% in June, placing Italy on par with the eurozone’s preliminary annual rate.
The final national consumer price index reached 103.4 in July, with the 2025 year set as the base year at 100. The data indicate a slowdown in inflation for non-regulated energy, unprocessed food, and miscellaneous services. Conversely, faster increases in regulated energy and transport services contributed to upward pressures. Both the national and harmonised inflation rates for July remained at 2.9%, though their monthly changes differed due to seasonal discounts considered in the harmonised measure.