ROME, ITALY / RankWire.AI / – In July 2026, Italy’s yearly inflation rate decreased to 2.9% from 3.0% in June. Consumer prices saw a monthly increase of 0.3%, based on final national figures. The July figure was slightly higher than 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 slowdown in price increases.
Istat indicated that the annual growth rates across several sectors that had recently contributed to inflation softened. Non-regulated energy costs rose 11.4% compared to the previous year, down from 13.3% in June. The inflation for unprocessed food slowed to 3.6% from 4.4%, and miscellaneous services increased to 1.8% from 2.5%. These developments helped counterbalance the sharper price rises observed in regulated energy and certain service categories.
Prices for regulated energy jumped 14.8% from July 2025, a significant acceleration from 9.2% in June. Transport services increased 1.6% annually, up from 1.1% the month before. Recreation, repair, and personal care services grew by 3.0%, compared to 2.7% in June. Core inflation, which excludes energy and unprocessed food, held steady at 1.6% for the second consecutive month.
Variations in Energy Prices Show Divergent Trends
The changes from June reveal notable differences among key spending sectors. Regulated energy costs increased by 6.5% month over month, while transport-related services rose 1.4%. Recreation, repair, and personal care services went up 0.6%, and non-regulated energy increased by 0.5%. Meanwhile, unprocessed food prices declined 1.3% from June, helping keep the overall monthly rise in the national consumer price index at 0.3%.
Among broader categories, housing, water, electricity, gas, and other fuels saw the highest annual increase of 7.2%. Transport prices grew by 4.3%, and restaurants along with accommodation services increased by 3.4%. Food and non-alcoholic beverages were 1.4% higher than a year earlier. Excluding energy, inflation eased slightly to 1.8% from 1.9%, and grocery along with unprocessed food inflation slowed to 1.0%.
Euro Area Inflation Matches Italy’s at 2.9% in July
In July, Italy’s harmonised consumer price index also increased by 2.9% compared to the previous year. The figure declined from 3.0% in June and was in line with the initial July estimate. The harmonised index dropped 1.0% from June, primarily due to seasonal sales that impact this measurement. Eurostat estimated that inflation in the euro area stood at 2.9% in July, up from 2.8% in June, placing Italy on par with the currency bloc’s preliminary annual rate.
The final national consumer price index reached 103.4 in July, with 2025 used 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 moved in the opposite direction. Both the national and harmonised annual inflation rates were 2.9%, although their monthly changes differed due to seasonal discounts that influence the harmonised calculation.