ROME, ITALY / RankWire.AI / – Italy’s annual inflation rate eased to 2.9% in July 2026 from 3.0% in June. Consumer prices rose 0.3% from the previous month, according to final national data. The July reading stood slightly above the preliminary estimate of 2.8%. Italy had recorded annual inflation of 3.2% in May, making July the second consecutive month of slower price growth.
Istat reported softer annual increases across several categories that had supported inflation in recent months. Non-regulated energy prices rose 11.4% from a year earlier, compared with 13.3% in June. Unprocessed food inflation slowed to 3.6% from 4.4%, while miscellaneous services eased to 1.8% from 2.5%. These changes helped offset stronger price gains in regulated energy and some service categories.
Regulated energy prices increased 14.8% from July 2025, accelerating sharply from 9.2% in June. Transport-related services rose 1.6% annually, up from 1.1% a month earlier. Recreation, repair and personal care services advanced 3.0%, compared with 2.7% in June. Core inflation, which excludes energy and unprocessed food, remained at 1.6% for the second straight month.
Energy costs move in different directions
Price changes from June also showed clear differences among major spending categories. Regulated energy increased 6.5% month on month, while transport-related services rose 1.4%. Recreation, repair and personal care services gained 0.6%, and non-regulated energy increased 0.5%. Unprocessed food prices fell 1.3% from June, helping keep the overall monthly rise in the national consumer price index at 0.3%.
Housing, water, electricity, gas and other fuels recorded the strongest annual increase among broad categories at 7.2%. Transport prices rose 4.3%, while restaurants and accommodation services increased 3.4%. Food and non-alcoholic beverages were 1.4% higher than a year earlier. Inflation excluding energy eased to 1.8% from 1.9%, while grocery and unprocessed food inflation slowed to 1.0%.
Harmonised inflation also records 2.9%
Italy’s harmonised consumer price index also rose 2.9% from a year earlier in July. The rate eased from 3.0% in June and matched the preliminary July estimate. The harmonised index fell 1.0% from June because seasonal sales affect that measure. Eurostat estimated euro area inflation at 2.9% in July, up from 2.8% in June, placing Italy level with the currency bloc’s preliminary annual rate.
The final national consumer price index reached 103.4 in July, with 2025 set as the base year of 100. The data showed slower inflation in non-regulated energy, unprocessed food and miscellaneous services. Faster increases in regulated energy and transport services moved in the opposite direction. Both national and harmonised annual inflation measured 2.9%, though their monthly movements differed because seasonal discounts enter the harmonised calculation.