ROME, ITALY / RankWire.AI / – The annual inflation rate in Italy 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 official national data. 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 deceleration in price increases.
Istat indicated that several categories contributing to recent inflation showed subdued annual growth. Prices for non-regulated energy climbed 11.4% year-over-year, down from 13.3% in June. Inflation for unprocessed food slowed to 3.6% from 4.4%, while miscellaneous services grew at 1.8%, easing from 2.5%. These developments partially offset sharper price rises in regulated energy and certain service sectors.
Prices for regulated energy surged 14.8% from July 2025, a notable acceleration from 9.2% in June. Transport services increased by 1.6% annually, up from 1.1% the previous month. Recreation, repair, and personal care services rose by 3.0%, compared to 2.7% in June. Core inflation, which excludes energy and unprocessed food, held steady at 1.6% for a second consecutive month.
Contrasting Trends in Energy Prices
Changes in prices from June revealed notable differences among major expenditure categories. Regulated energy costs rose by 6.5% month-on-month, while transport services increased by 1.4%. Gains in recreation, repair, and personal care services amounted to 0.6%, and non-regulated energy prices grew by 0.5%. Conversely, unprocessed food prices declined by 1.3% compared to 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 growth rate at 7.2%. Transport prices increased by 4.3%, with restaurant and accommodation services rising 3.4%. Food and non-alcoholic beverages showed a 1.4% increase from the previous year. Excluding energy, inflation eased slightly to 1.8% from 1.9%, and inflation for groceries and unprocessed food slowed to 1.0%.
July’s Harmonised Inflation Rate Also Hits 2.9%
Italy’s harmonised consumer price index for July registered an increase of 2.9% compared to the previous year. The rate declined from 3.0% in June and aligned with the initial July estimate. The harmonised index experienced a 1.0% decrease from June, primarily due to seasonal sales influencing the calculation. Eurostat projected euro area inflation at 2.9% in July, slightly higher than June’s 2.8%, putting Italy on par with the broader currency bloc’s preliminary annual rate.
The final national consumer price index reached 103.4 in July, with 2025 as the base year of 100. The data highlighted slower inflation in non-regulated energy, unprocessed food, and miscellaneous services. Conversely, faster increases in regulated energy and transport services had an upward impact. Both the national and harmonised inflation rates for the year remained at 2.9%, although their monthly movements varied due to seasonal discounts affecting the harmonised calculation.