Italy: Italy's annual consumer inflation rate has slowed to 3% in June, a slight decrease from the 3.2% recorded in May, as reported by the country's statistical authority, Istat. The reduction in inflation was primarily attributed to a decrease in food and services prices, which managed to counterbalance the surge in energy costs.

According to Anadolu Agency, the national consumer price index, excluding tobacco, remained unchanged from the previous month, aligning with earlier predictions. The primary factor in the annual deceleration was the easing of unprocessed food prices, which saw a reduction in their annual increase from 5.5% in May to 4.4% in June.

Inflation in sectors such as recreational, cultural, and personal care services also showed a decline, moving from 3% to 2.7%. Similarly, transport-related services experienced a decrease in inflation, dropping from 1.7% to 1.1%. However, these reductions were partly counterbalanced by the acceleration in energy prices.

Regulated energy product prices increased by 9.2% compared to the previous year, a significant rise from the 5.6% recorded earlier. Unregulated energy inflation also saw an uptick, increasing from 12.5% to 13.3%. Despite this, core inflation, which excludes energy and fresh food, saw a slight decrease, moving from 1.7% to 1.6%. Inflation excluding energy also slowed down, dropping from 2.1% to 1.9%.

The overall goods inflation rate eased slightly from 3.4% to 3.3%, while services inflation saw a decline from 2.8% to 2.6%. There was also a notable decrease in prices for food, household, and personal care products, which rose by 1.3% year on year, down from 1.9% in May. Inflation for frequently purchased goods also showed a reduction, slowing from 4.4% to 3.9%.

The EU-harmonized index of consumer prices remained stable on a monthly basis and increased by 3% annually, compared with 3.2% in May. This final annual reading was revised down from the preliminary estimate of 3.1%. Istat also noted that Italy's inflation carryover for 2026 is projected to stand at 2.6% for the headline index and 1.7% for the core measure.

During the second quarter, harmonized consumer prices rose by 3.7% for households with lower spending levels, compared to a 2.6% increase for households with higher expenditure.