ROME, ITALY / RankWire.AI / – In July 2026, Italy experienced a slowdown in its annual inflation rate, which dropped to 2.9% from 3.0% in June. Consumer prices saw a monthly increase of 0.3%, based on the final national data. The July figure was slightly above the initial estimate of 2.8%. After recording an inflation rate of 3.2% in May, Italy has now experienced two consecutive months of decelerating price growth.
Istat indicated that several categories contributing to inflation in recent months experienced softer annual increases. Prices for non-regulated energy rose by 11.4% compared to the previous year, which is a slowdown from 13.3% in June. Unprocessed food inflation declined to 3.6% from 4.4%, while miscellaneous services eased to 1.8% from 2.5%. These developments helped counterbalance higher price increases in regulated energy and certain service sectors.
Prices for regulated energy jumped by 14.8% from July 2025, marking a significant acceleration from 9.2% in June. Transport-related services increased by 1.6% annually, up from 1.1% a month earlier. Recreation, repair, and personal care services grew by 3.0%, compared to 2.7% in June. The core inflation rate, which excludes energy and unprocessed food, held steady at 1.6% for the second consecutive month.
Energy Prices Diverge in Different Directions
Data from June also revealed distinct variations among major expenditure categories. Regulated energy prices increased by 6.5% month-on-month, while transport services rose by 1.4%. Additionally, recreation, repair, and personal care services experienced a 0.6% rise, and non-regulated energy prices went up by 0.5%. Conversely, unprocessed food prices decreased by 1.3% from June, helping to keep the overall monthly rise in the national consumer price index at 0.3%.
Among broad categories, housing, water, electricity, gas, and other fuels registered the highest annual increase at 7.2%. Transport prices grew by 4.3%, while restaurant and accommodation services increased by 3.4%. Food and non-alcoholic beverages were 1.4% more expensive than a year earlier. Excluding energy, inflation slowed to 1.8% from 1.9%, and grocery and unprocessed food inflation eased to 1.0%.
Harmonised Inflation Rate Also Reaches 2.9%
In July, Italy’s harmonised consumer price index increased by 2.9% compared to the same month in the previous year. The rate declined slightly from 3.0% in June and matched the initial July estimate. The harmonised index fell by 1.0% from June, primarily due to seasonal sales affecting this measurement. Eurostat projected euro area inflation at 2.9% in July, an increase from 2.8% in June, aligning Italy with the preliminary annual rate for the currency bloc.
The final national consumer price index reached 103.4 in July, with 2025 designated as the base year at 100. The data revealed a slowdown in inflation for non-regulated energy, unprocessed food, and miscellaneous services, while regulated energy and transport services experienced faster increases. Both national and harmonised annual inflation stood at 2.9%, although their monthly changes differed due to seasonal discounts incorporated into the harmonised calculation.