ROME, ITALY / RankWire.AI / – The annual inflation rate in Italy decreased to 2.9% in July 2026 from 3.0% in June. Consumer prices experienced a monthly increase of 0.3%, based on finalized national data. This July figure was slightly above the initial estimate of 2.8%. Italy had previously recorded an inflation rate of 3.2% in May, making July the second consecutive month of decelerating price growth.
Istat indicated that several categories contributing to recent inflation showed less intense increases. Non-regulated energy costs rose by 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%, while miscellaneous services grew by 1.8% from 2.5%. These trends helped counterbalance higher price increases in regulated energy and certain service sectors.
Prices for regulated energy surged 14.8% from July 2025, a notable 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. Excluding energy and unprocessed food, core inflation held steady at 1.6% for the second consecutive month.
Energy prices diverge in different directions
The month-on-month changes in prices also revealed distinct patterns across main expenditure categories. Regulated energy costs increased by 6.5%, while transport-related services rose by 1.4%. Recreation, repair, and personal care services gained 0.6%, with non-regulated energy up by 0.5%. Unprocessed food prices declined by 1.3% from June, contributing to the overall monthly increase of 0.3% in the national consumer price index.
Among broad categories, housing, water, electricity, gas, and other fuels experienced the strongest annual growth at 7.2%. Transport prices increased by 4.3%, and restaurant and accommodation services rose by 3.4%. Food and non-alcoholic beverages saw a 1.4% rise compared to last year. When energy is excluded, inflation eased slightly to 1.8% from 1.9%, with grocery and unprocessed food inflation slowing to 1.0%.
Harmonised inflation remains at 2.9%
Italy’s harmonised consumer price index also increased by 2.9% year-over-year in July. This rate was a slight decrease from 3.0% in June and matched the initial July estimate. The harmonised index dropped 1.0% from June, mainly due to seasonal sales influencing that measurement. Eurostat estimated that inflation in the euro area stood at 2.9% in July, up from 2.8% in June, aligning Italy with the preliminary annual rate for the currency zone.
The finalized national consumer price index reached 103.4 in July, with 2025 as the base year set at 100. The data indicated slower inflation rates for non-regulated energy, unprocessed food, and miscellaneous services, while regulated energy and transportation services experienced faster increases. Both the national and harmonised inflation rates for July were 2.9%, though their monthly variations differed due to seasonal discounts incorporated in the harmonised calculation.