Italy’s annual inflation rate eased to 2.8% in July 2026 from 3.0% in June, in line with the median market forecast, according to a preliminary estimate. This marked the second consecutive decline since inflation peaked at a more than two-year high of 3.2% in May, indicating a modest cooling in price pressures. The slowdown was partly driven by a temporary resumption of energy exports from the Middle East, which helped ease wholesale energy prices.
Inflation in non-regulated energy components—those more directly exposed to fluctuations in international benchmarks—slowed to 10.6% from 13.3% in June. Price growth also decelerated for fresh food (3.8% vs 4.4%) and for broad services (1.8% vs 2.5%).
By contrast, prices rebounded for non-fresh food, rising 0.2% after a 0.2% decline in the previous month. Inflation also accelerated for regulated energy (14.9% vs 9.2%) and transportation services (1.6% vs 1.1%).
Core inflation, which excludes energy and fresh food due to their typically exogenous and volatile price movements, edged down to 1.8% from 1.9%.
