| Actual | Previous | |
| Month over Month | 0.2% | 0.0% |
| Year over Year | 2.8% | 3.0% |
| HICP - M/M | -1.0% | 0.0% |
| HICP - Y/Y | 2.9% | 3.0% |
Highlights
Italy’s annual inflation rate declined modestly from 3.0 percent to 2.8 percent in July 2026, despite a 0.2 percent monthly increase. The slowdown was supported by weaker inflation in unprocessed food, non-regulated energy and miscellaneous services. However, this apparent improvement masks significant underlying pressures.
Regulated-energy inflation surged from 9.2 percent to 14.9 percent, including a 6.6 percent monthly increase, while transport-services inflation accelerated to 1.6 percent. Processed-food inflation also returned to positive territory. These developments may restrict improvements in household purchasing power because energy and transport costs can indirectly raise prices across the wider economy.
Goods inflation slowed to 3.1 percent but remained above the stable 2.6 percent services rate. Meanwhile, the HICP fell by 1.0 percent monthly because it incorporates summer-sale discounts excluded from the NIC, although its annual rate remained elevated at 2.9 percent.
Indeed, Italy’s inflation is cooling at the headline level but becoming increasingly uneven. Lower food and market-energy pressures provide relief, while regulated energy represents a growing risk to household budgets and future inflation expectations.