The annual inflation rate in Italy held steady at 1.7% in July 2025, consistent with the previous month and aligning with preliminary estimates. This figure defied initial market predictions, which anticipated a reduction to 1.5%. Additionally, the EU-harmonized inflation rate slightly decreased to 1.7% from 1.8% in the previous month. This marks the lowest rate recorded this year, which is beneath the European Central Bank's target of 2% yet higher than the expected 1.6%.
There was an increase in the inflation rates for both unprocessed (rising to 5.1% from 4.2% in June) and processed foods (up to 2.8% from 2.7%). Similarly, inflation climbed for miscellaneous services (up to 2.2% from 1.6%) and transportation services (increasing to 3.3% from 2.9%). Conversely, price growth decelerated for regulated energy (slowing to 17.1% from 22.6%) and recreational and cultural services (down to 2.7% from 3.2%). The core inflation rate, which excludes the often-volatile fresh food and energy sectors, remained steady at 2%. On a monthly basis, Italy's Consumer Price Index (CPI) increased by 0.4%.
