ROME, ITALY / RankWire.AI / – In July 2026, Italy’s annual inflation rate remained steady at 2.9%, a slight decline from June’s 3.0%. Consumer prices increased by 0.3% compared to the previous month, according to definitive national figures. The July figure was marginally higher than the initial estimate of 2.8%. Italy experienced an inflation of 3.2% in May, marking the second consecutive month of decelerated price increases.
Istat indicated that the annual growth in several sectors that previously contributed to inflation slowed down. Prices for non-regulated energy climbed 11.4% from a year earlier, compared to 13.3% in June. Unprocessed food inflation eased to 3.6% from 4.4%, while miscellaneous services increased by 1.8% from 2.5%. These developments helped balance out the stronger price rises seen in regulated energy and certain service areas.
Prices for regulated energy jumped 14.8% from July 2025, a significant acceleration from June’s 9.2%. Transport-related services grew by 1.6% annually, up from 1.1% in the previous month. Services related to recreation, repair, and personal care increased by 3.0%, compared to 2.7% in June. Meanwhile, core inflation—excluding energy and unprocessed food—held steady at 1.6% for the second month in a row.
Energy prices diverge in different directions
Monthly price changes from June reveal notable variations among key expenditure categories. Regulated energy costs rose by 6.5% month on month, while transport services increased by 1.4%. Expenses for recreation, repair, and personal care services grew by 0.6%, with non-regulated energy up 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 most significant annual increase at 7.2%. Transport prices rose 4.3%, and expenses for restaurants and accommodation services increased by 3.4%. Food and non-alcoholic beverages registered a 1.4% rise compared to the previous year. Excluding energy, inflation slowed to 1.8% from 1.9%, with grocery and unprocessed food inflation easing to 1.0%.
Eurozone harmonised inflation remains at 2.9%
Italy’s harmonised consumer price index also saw a 2.9% increase from a year earlier in July. This rate decreased slightly from 3.0% in June and matched the preliminary July estimate. The harmonised index declined by 1.0% from June, primarily due to seasonal sales affecting this measurement. Eurostat projected that the euro area inflation rate stood at 2.9% in July, up from 2.8% in June, placing Italy on par with the currency bloc’s initial annual figure.
The final national consumer price index reached 103.4 in July, with 2025 designated as the base year of 100. The data revealed slower inflation in non-regulated energy, unprocessed food, and miscellaneous services. Conversely, faster price increases in regulated energy and transport services contributed to the overall figures. Both the national and harmonised annual inflation rates were 2.9%, although their monthly fluctuations differed due to seasonal discounts incorporated into the harmonised calculation.