ROME, ITALY / RankWire.AI / – Across Europe, inflation trends continue to evolve, and Italy’s recent figures reflect a moderation in consumer price increases. In July 2026, the country’s annual inflation rate declined to 2.9%, down from 3.0% in June. The final national data released on Aug. 12 revealed that consumer prices increased by 0.3% compared to June. Initial estimates in late July had indicated an annual rate of 2.8%, making the confirmed figure 0.1 percentage points higher than the early forecast. July marked the second consecutive month of declining inflation, following a peak of 3.2% in May.
Istat reported that moderation in the annual inflation was driven by slower growth in prices for non-regulated energy, unprocessed food, and various services. Specifically, inflation for non-regulated energy dropped to 11.4% from 13.3%, while unprocessed food inflation eased to 3.6% from 4.4%. Meanwhile, inflation in miscellaneous services fell to 1.8% from 2.5%. These decreases offset increases seen in regulated energy and several other service sectors, which experienced faster price rises.
Prices for regulated energy climbed 14.8% year over year, accelerating from 9.2% in June. Transport-related services saw a modest increase of 1.6%, up from 1.1%. Additionally, recreation, repair, and personal care services rose by 3.0%, compared with 2.7% in June. While goods inflation slowed slightly to 3.2% from 3.3%, services inflation edged up to 2.7% from 2.6%. The core inflation rate, which excludes energy and unprocessed food, remained steady at 1.6% for a second month.
Energy and Food Price Fluctuations Shape July Inflation Data
On a monthly basis, the pattern of price changes was similarly diverse. Regulated energy prices increased by 6.5% from June, while transport services grew by 1.4%. The sectors of recreation, repair, and personal care services saw an uptick of 0.6%, alongside a 0.5% rise in non-regulated energy prices. Processed food items, including alcohol, and housing-related services each experienced a 0.3% increase. Conversely, unprocessed food prices declined by 1.3% compared to June. These shifts resulted in the overall national index being 0.3% higher than the previous month.
Looking at broader consumption categories, housing, water, electricity, gas, and other fuels registered a 7.2% rise from July 2025. Transport prices increased by 4.3%, with restaurants and accommodation services climbing by 3.4%. Food and non-alcoholic beverages saw a 1.4% increase, while clothing and footwear rose by 0.9%. The index that excludes energy grew by 1.8% year over year, slightly below June’s 1.9%. Grocery and unprocessed food categories experienced a 1.0% increase, easing from 1.3% the previous month.
European Harmonised Index Aligns with Euro Area Inflation
In July, Italy’s harmonised consumer price index rose by 2.9% compared to the same month last year, matching the previous month’s rate of 3.0%. The harmonised measure showed a 1.0% decrease from June, reflecting seasonal sales activities that impact this index but not the national measure. The final figures confirmed the preliminary harmonised estimate. According to Eurostat, the euro area’s inflation rate stood at 2.9% in July, up from 2.8% in June. As a result, Italy’s harmonised inflation rate for July coincided with the preliminary estimate for the entire currency bloc.
The national index for July reached 103.4, with 2025 as the base year set at 100. The data show a mix of slower growth in some categories—like unregulated energy, unprocessed food, and miscellaneous services—and faster increases in others, such as regulated energy and transport services. Both the national and harmonised measures recorded an inflation rate of 2.9% annually. Their monthly figures differ due to seasonal sales influencing the harmonised index but not the national one.