ROME, ITALY / RankWire.AI / – Italy’s yearly inflation rate moderated to 2.9% in July 2026, down from 3.0% in June, with consumer prices increasing by 0.3% compared to the previous month, according to the definitive data released nationally. This July reading was marginally above the initial estimate of 2.8%. Italy experienced an inflation of 3.2% in May, marking July as the second month in a row with a deceleration in price increases.
Istat reported that multiple categories, which had contributed to inflation in recent months, experienced softer annual growth rates. Specifically, non-regulated energy prices grew by 11.4% year-on-year, compared to 13.3% in June. Inflation in unprocessed food slowed down to 3.6% from 4.4%, and miscellaneous services eased to 1.8% from 2.5%. These developments partially offset the sharper price increases observed in regulated energy and certain service sectors.
Prices for regulated energy jumped 14.8% from July 2025, accelerating notably from the 9.2% increase recorded in June. Transport-related services climbed 1.6% annually, up from 1.1% a month earlier. Services related to recreation, repairs, and personal care increased by 3.0%, compared with 2.7% in June. Core inflation, which excludes energy and unprocessed food, remained steady at 1.6% for the second consecutive month.
Contrasting Trends in Energy Costs
The month-on-month data from June also revealed notable differences among major spending categories. Regulated energy prices went up by 6.5%, while transport services rose by 1.4%. Gains in recreation, repairs, and personal care services were 0.6%, with non-regulated energy increasing by 0.5%. Conversely, unprocessed food prices declined 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 experienced 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 showed a 1.4% rise compared to last year. When excluding energy, inflation slowed slightly to 1.8% from 1.9%, and the inflation for groceries and unprocessed food decelerated to 1.0%.
Harmonised inflation rate also levels at 2.9%
The harmonised consumer price index in Italy also grew by 2.9% in July, matching the preliminary estimate and representing a decrease from 3.0% in June. This index fell by 1.0% from June due to seasonal sales influencing that measure. Eurostat estimated that the euro area’s inflation rate was 2.9% in July, slightly higher than the 2.8% observed in June, placing Italy’s rate in alignment with the initial figures for the currency zone.
The final national consumer price index reached 103.4 in July, with 2025 serving as the base year (index set at 100). The data showed a slowdown in inflation for non-regulated energy, unprocessed food, and miscellaneous services, while increases in regulated energy and transport services moved in the opposite direction. Both the national and harmonised annual inflation rates measured 2.9%, although their monthly fluctuations differed because the harmonised index includes seasonal discounts.