Italy July Inflation Revised Up to 2.9%

The annual inflation rate in Italy came at 2.9% in July 2026, revised up from a preliminary estimate of 2.8% but slightly down from 3.0% in June. It marked the second moderation since the rate climbed to a more than two-year high of 3.2% in May, as the temporary resumption of energy exports from the Middle East helped ease price pressures during the period. Non-regulated energy inflation, which is more responsive to movements in global benchmarks, slowed to 11.4% from 13.3% in June. Price growth also eased for unprocessed food products (3.6% vs 4.4%) and miscellaneous services (1.8% vs 2.5%). Conversely, inflation picked up for regulated energy (14.8% vs 9.2%), transport-related services (1.6% vs 1.1%), and recreational, cultural and personal care services (3.0% vs 2.7%). On a monthly basis, consumer prices rose 0.3%, following a flat reading in June. Core inflation, which excludes energy eased to 1.8% from 1.9%.

The annual inflation rate in Italy eased to 2.8% in July of 2026 from 3% in the previous month, aligned with the median market consensus, according to a preliminary estimate. It was the second pullback since the rate surged to an over-two-year high of 3.2% in May, reflecting some softening as the temporary resumption of energy exports from the Middle East brought relief to wholesale prices in the period. Non-regulated energy inflation, which are more sensitive to swings in global benchmarks, eased to 10.6% from 13.3% in June. Prices also slowed for fresh food (3.8% vs 4.4%) and broad services (1.8% vs 2.5%). In turn, prices rebounded for non-fresh food (0.2% vs -0.2%) and rose faster for regulated energy (14.9% vs 9.2%) and transportation services (1.6% vs 1.1%). Core inflation, which excludes energy and fresh food prices due to their often exogenous price swings, eased to 1.8% from 1.9%).

Italy’s headline inflation rate eased to 3.0% in June 2026 from a more than two-and-a-half-year high of 3.2% in May, confirming preliminary estimates. This was the first deceleration in consumer inflation since January, amid softer price increases in unprocessed food (4.4% vs 5.5% in May), recreational, cultural, and personal care services (2.7% vs 3.0%), and transport-related services (1.1% vs 1.7%). However, higher energy prices stemming from supply pressures in the Middle East continued to feed through to consumers, with prices for both regulated energy (9.2% vs 5.6%) and unregulated energy (13.3% vs 12.5%) accelerating. On a monthly basis, consumer prices were unchanged in June after rising 0.4% in the previous month. Core inflation, excluding energy and fresh food, edged down to 1.6% from 1.7%, while inflation excluding energy alone also eased to 1.9% from 2.1%. The HICP was unchanged month-on-month and rose 3.0% year-on-year, slowing from 3.2% in May.